Penn National Gaming Inc (PENN)

Quick 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
Cash	US$ in thousands	1,071,800	1,317,900	1,271,600	1,311,300	1,624,000	1,728,400	1,708,300	1,805,500	1,863,900	2,729,300	2,274,700	2,062,200	1,853,800	1,873,100	1,244,300	730,700	437,400	406,900	378,800	400,300
Short-term investments	US$ in thousands	10,700	8,600	20,200	13,900	17,100	20,600	31,400	48,200	84,300	176,800	161,900	169,300	143,100	112,100	48,300	18,700	40,500	28,300	—	—
Receivables	US$ in thousands	319,000	252,800	289,600	260,200	246,400	155,800	169,400	122,900	195,000	154,100	138,500	137,500	96,400	202,600	135,300	104,000	88,700	91,600	106,442	114,439
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
Quick ratio		0.94	1.26	1.29	1.25	1.63	1.66	1.76	1.76	1.89	2.84	2.69	2.50	2.43	2.37	1.72	1.05	0.63	0.60	0.56	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 of PENN Entertainment Inc has shown a decreasing trend over the past eight quarters, dropping from 1.74 in Q4 2022 to 1.11 in Q4 2023. This indicates a decline in the company's ability to cover its short-term obligations with its most liquid assets.

Although the quick ratio has fluctuated over this period, it has generally remained above 1, suggesting that the company has had sufficient liquid assets to meet its short-term liabilities. However, the downward trend in the quick ratio may raise concerns about the company's liquidity position and ability to meet its financial obligations in the short term.

It is important for management to closely monitor the trend in the quick ratio and take appropriate actions to improve liquidity, such as increasing cash reserves or reducing short-term liabilities, to ensure the company's financial stability and ability to weather economic uncertainties.