Penn National Gaming Inc (PENN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.82 | 0.94 | 1.03 | 1.04 | 1.11 | 1.42 | 1.41 | 1.03 | 1.74 | 1.79 | 1.90 | 1.88 | 1.96 | 2.82 | 2.66 | 2.48 | 2.42 | 2.37 | 1.99 | 1.56 |
| Quick ratio | 0.50 | 0.61 | 2.08 | 0.69 | 0.72 | 1.05 | 1.04 | 1.03 | 1.40 | 1.51 | 1.57 | 1.61 | 1.64 | 2.53 | 2.37 | 2.18 | 2.46 | 2.32 | 1.50 | 0.90 |
| Cash ratio | 0.50 | 0.61 | 2.08 | 0.69 | 0.72 | 1.05 | 1.04 | 1.03 | 1.40 | 1.51 | 1.57 | 1.61 | 1.64 | 2.53 | 2.37 | 2.18 | 2.46 | 2.32 | 1.50 | 0.90 |
Penn National Gaming Inc's liquidity ratios show a mixed picture over the past few years.
The current ratio, which measures the company's ability to cover short-term obligations with its current assets, increased steadily from March 2020 to September 2021, indicating improving liquidity. However, in the latter part of 2021 and throughout 2022, the current ratio started to decline, dropping below 2. This decrease suggests a potential weakening in the company's ability to meet its short-term liabilities.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar trend to the current ratio. It also improved until September 2021 but declined afterwards, indicating a potentially lower capacity to meet immediate liabilities without relying on inventory.
The cash ratio, which specifically looks at the company's ability to cover current liabilities with its cash and cash equivalents, showed a similar pattern to the quick ratio. While the cash ratio remained relatively stable at a healthy level until late 2022, it decreased notably in the last quarter of 2023 and throughout 2024, indicating a potential strain on the company's ability to pay off short-term obligations with its available cash.
Overall, the liquidity ratios of Penn National Gaming Inc suggest a period of improving liquidity followed by a decline in recent quarters, signaling a potential need for the company to closely monitor its short-term liquidity position and take necessary actions to strengthen it.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 20.03 | 1.08 | 3.15 | 3.38 | 10.66 | 11.24 | 13.90 | 14.61 | 15.34 | 14.92 | 15.52 | 22.01 | 20.22 | 8.54 | 8.88 | 0.00 |
The cash conversion cycle of Penn National Gaming Inc has shown fluctuations over the periods provided. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital.
Penn National Gaming Inc started with a cash conversion cycle of 0 days as of March 31, 2020, indicating quick conversion of investments into cash flows. However, this cycle increased to a peak of 22.01 days by March 31, 2021, suggesting a delay in cash flow generation from sales relative to investment in resources.
From June 30, 2021, onwards, the company managed to reduce its cash conversion cycle steadily to 3.15 days as of June 30, 2023, showcasing an improvement in efficiency and better management of working capital. This reduction in the cash conversion cycle indicates that Penn National Gaming Inc was able to collect cash more quickly from its operations.
The company experienced a significant jump in its cash conversion cycle to 20.03 days by December 31, 2023, but subsequently, it returned to 0 days as of March 31, 2024, signaling a potentially positive trend in working capital management.
Overall, fluctuations in Penn National Gaming Inc's cash conversion cycle point to varying efficiencies in managing its working capital, with an emphasis on the need to monitor and improve cash flow generation from sales and the management of inventory and resources.