Penn National Gaming Inc (PENN)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 6,578,100 6,304,500 6,284,700 6,296,500 6,362,900 6,553,100 6,558,700 6,510,800 6,401,700 6,388,600 6,275,400 6,194,300 5,905,000 5,359,900 4,977,800 3,737,500 3,578,700 3,892,500 4,117,300 5,134,890
Total current assets US$ in thousands 1,154,400 1,280,900 1,332,800 1,392,900 1,659,000 1,780,700 1,735,700 1,311,300 2,013,400 2,058,500 2,058,900 2,113,000 2,223,600 3,039,100 2,552,400 2,347,700 2,085,000 2,186,500 1,646,600 1,270,000
Total current liabilities US$ in thousands 1,415,100 1,361,200 1,299,600 1,337,700 1,490,000 1,252,800 1,226,700 1,271,000 1,158,700 1,148,300 1,085,900 1,122,900 1,133,200 1,077,700 958,100 947,300 860,000 921,400 827,800 813,900
Working capital turnover — — 189.30 114.07 37.65 12.41 12.89 161.56 7.49 7.02 6.45 6.26 5.42 2.73 3.12 2.67 2.92 3.08 5.03 11.26

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,578,100K ÷ ($1,154,400K – $1,415,100K)
= —

The working capital turnover ratio of Penn National Gaming Inc has exhibited significant fluctuations over the period under consideration. The ratio measures how efficiently the company is utilizing its working capital to generate revenue. In March 2020, the ratio was a healthy 11.26, indicating that the company was able to generate 11.26 times revenue from its working capital during that period.

Subsequently, the ratio saw a decline to 5.03 in June 2020, signaling a decrease in the efficiency of working capital utilization. This downward trend continued as the ratio dropped to 2.67 in March 2021 before showing some improvement to 6.45 in June 2022.

However, the ratio experienced extreme fluctuations in the following periods, with the ratio soaring to 161.56 in March 2023, signifying a very high level of working capital efficiency but likely influenced by specific events or anomalies during that period. The ratio then decreased to 12.89 in June 2023 and 37.65 in December 2023.

In the latest available data, the ratio has shown substantial variability, with a significant increase to 189.30 in June 2024. The absence of data for September and December 2024 makes it challenging to ascertain the trend continuity.

Overall, the working capital turnover ratio of Penn National Gaming Inc has demonstrated considerable volatility, warranting further analysis to understand the underlying factors driving these fluctuations and their implications for the company's financial performance and operational efficiency.