Penn National Gaming Inc (PENN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 706,600 | 1,071,800 | 1,624,000 | 1,863,900 | 1,853,800 |
| Short-term investments | US$ in thousands | — | — | — | — | 266,000 |
| Total current liabilities | US$ in thousands | 1,415,100 | 1,490,000 | 1,158,700 | 1,133,200 | 860,000 |
| Cash ratio | 0.50 | 0.72 | 1.40 | 1.64 | 2.46 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($706,600K
+ $—K)
÷ $1,415,100K
= 0.50
The cash ratio of Penn National Gaming Inc has shown a decreasing trend over the years. As of December 31, 2020, the cash ratio was 2.46. However, this ratio declined to 1.64 by December 31, 2021, and further dropped to 1.40 by December 31, 2022. The decline continued with the ratio reaching 0.72 by December 31, 2023, and eventually dropping to 0.50 by December 31, 2024.
The decreasing trend in the cash ratio indicates that Penn National Gaming Inc may be facing challenges with managing its liquidity position efficiently. A lower cash ratio suggests that the company may have a smaller cushion of liquid assets available to cover its short-term liabilities. Management should closely monitor and assess the company's cash management practices to ensure adequate liquidity to meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2024