Penn National Gaming Inc (PENN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,362,900 | 6,401,700 | 5,905,000 | 3,578,700 | 5,301,400 |
| Total current assets | US$ in thousands | 1,659,000 | 2,013,400 | 2,223,600 | 2,085,000 | 642,800 |
| Total current liabilities | US$ in thousands | 1,490,000 | 1,158,700 | 1,133,200 | 860,000 | 905,600 |
| Working capital turnover | 37.65 | 7.49 | 5.42 | 2.92 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,362,900K ÷ ($1,659,000K – $1,490,000K)
= 37.65
The working capital turnover ratio for PENN Entertainment Inc has shown a significant upward trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital.
In 2019, the working capital turnover ratio was not available. However, from 2020 to 2023, there was a steady increase in the ratio, with a substantial jump from 2.92 in 2020 to 37.65 in 2023. This suggests that the company is generating more revenue relative to its investment in working capital.
A higher working capital turnover ratio indicates that the company is effectively managing its current assets and liabilities to support its operations and generate sales. It reflects a quicker turnover of working capital, which may lead to increased profitability and liquidity.
Overall, the rising trend in PENN Entertainment Inc's working capital turnover ratio signals positive developments in its operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023