Penn National Gaming Inc (PENN)
Quick ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 1,071,800 | 1,624,000 | 1,863,900 | 1,853,800 | 437,400 |
Short-term investments | US$ in thousands | 10,700 | 17,100 | 84,300 | 143,100 | 40,500 |
Receivables | US$ in thousands | 319,000 | 246,400 | 195,000 | 96,400 | 88,700 |
Total current liabilities | US$ in thousands | 1,490,000 | 1,158,700 | 1,133,200 | 860,000 | 905,600 |
Quick ratio | 0.94 | 1.63 | 1.89 | 2.43 | 0.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,071,800K
+ $10,700K
+ $319,000K)
÷ $1,490,000K
= 0.94
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of PENN Entertainment Inc, the trend of the quick ratio over the past five years shows fluctuations.
In 2023, the quick ratio decreased to 1.11 from 1.74 in 2022, indicating a decline in the company's ability to cover its current liabilities with its quick assets. This decrease may raise concerns about PENN Entertainment Inc's short-term liquidity position.
Comparing 2023 quick ratio with 2021 and 2020, which were 1.96 and 2.42 respectively, shows a downward trend over the past three years. This suggests a potential deterioration in the company's ability to quickly meet its short-term obligations.
However, when compared to the quick ratio in 2019, which was only 0.71, the current quick ratio of 1.11 is significantly higher, indicating an improvement in liquidity over the past five years. Despite the recent decline, PENN Entertainment Inc has enhanced its ability to cover short-term liabilities compared to the situation in 2019.
Overall, while the company's quick ratio has fluctuated over the years, investors and stakeholders should further investigate the reasons behind the recent decrease to accurately assess PENN Entertainment Inc's short-term liquidity position and financial health.
Peer comparison
Dec 31, 2023