Penn National Gaming Inc (PENN)

Current ratio

		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
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
Current ratio		1.11	1.42	1.41	1.38	1.74	1.79	1.90	1.88	1.96	2.82	2.66	2.48	2.42	2.37	1.99	1.56	0.71	0.72	0.71	0.78

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,659,000K ÷ $1,490,000K
= 1.11

The current ratio of PENN Entertainment Inc has displayed some fluctuations over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger liquidity position.

In Q4 2023, the current ratio decreased to 1.11 from 1.42 in Q3 2023, signaling a potential decrease in the company's ability to cover its short-term obligations. This might indicate a strain on the company's liquidity position during that period. However, it is essential to consider the reasons behind this decrease, such as changes in inventory levels, accounts receivable, or accounts payable.

The current ratio in Q4 2023 is lower than the figures reported in the same quarter of the previous year, indicating a decline in liquidity compared to Q4 2022 when the ratio was 1.74. The current ratio has been on a downward trend since Q2 2023 when it reached 1.41.

Overall, the current ratio of PENN Entertainment Inc has shown some instability in recent quarters, with a general decreasing trend. It is crucial for investors and stakeholders to closely monitor the company's liquidity position and assess the reasons behind the fluctuations in the current ratio to make informed decisions about the company's financial health.