Penn National Gaming Inc (PENN)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	5,134,900	5,301,400	5,115,500	4,550,700	4,054,500
Total current assets	US$ in thousands	1,659,000	1,780,700	1,735,700	1,753,400	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	642,800	628,200	609,234	639,204
Total current liabilities	US$ in thousands	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	905,600	877,300	860,506	820,383
Working capital turnover		37.65	12.41	12.89	13.50	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, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,362,900K ÷ ($1,659,000K – $1,490,000K)
= 37.65

The working capital turnover of PENN Entertainment Inc has shown a positive trend over the past eight quarters, indicating an improvement in the efficiency of the company's management of its working capital. The ratio has increased steadily from Q1 2022, reaching a peak of 37.65 in Q4 2023. This suggests that the company is generating more revenue for each unit of working capital invested, which is a positive sign of effective working capital management.

A working capital turnover of 37.65 in Q4 2023 indicates that the company generated approximately $37.65 in revenue for every dollar of working capital invested during that quarter. This high turnover ratio reflects the company's ability to efficiently utilize its current assets and liabilities to generate sales.

Overall, the increasing trend in working capital turnover for PENN Entertainment Inc suggests that the company is effectively managing its working capital resources to support its operations and drive revenue growth. However, it is important for the company to maintain this positive trend and continue to monitor and optimize its working capital turnover ratio to ensure sustainable financial performance.