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.