Penn National Gaming Inc (PENN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 30.28% | 43.27% | 46.69% | 47.80% |
| Operating profit margin | 1.10% | 5.71% | 15.21% | 17.94% | 9.32% |
| Pretax margin | -5.19% | -7.85% | 2.74% | 9.13% | -23.31% |
| Net profit margin | -4.74% | -7.70% | 3.47% | 7.13% | -18.70% |
Based on the provided data, Penn National Gaming Inc's profitability ratios have experienced fluctuations over the years:
1. Gross Profit Margin:
- The gross profit margin decreased from 47.80% in December 2020 to 30.28% in December 2023, and then dramatically increased to 100.00% by December 2024. This could indicate changes in the cost of goods sold or revenue recognition practices.
2. Operating Profit Margin:
- The operating profit margin improved from 9.32% in December 2020 to 17.94% in December 2021, but then declined to 1.10% by December 2024. This suggests varying levels of operational efficiency and cost management over the period.
3. Pretax Margin:
- The pretax margin fluctuated from -23.31% in December 2020 to 9.13% in December 2021, and then decreased to -5.19% by December 2024. This indicates fluctuations in income before taxes relative to revenue.
4. Net Profit Margin:
- The net profit margin showed a similar fluctuation, moving from -18.70% in December 2020 to 7.13% in December 2021, then declining to -4.74% by December 2024. This demonstrates changes in profitability after accounting for all expenses.
In conclusion, Penn National Gaming Inc's profitability ratios have varied significantly over the years, reflecting changes in cost structures, revenue generation, and overall financial performance. It would be essential for stakeholders to closely monitor these ratios to assess the company's financial health and sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.48% | 2.26% | 5.57% | 6.28% | 2.27% |
| Return on assets (ROA) | -2.04% | -3.05% | 1.27% | 2.49% | -4.56% |
| Return on total capital | 4.51% | -1.09% | 27.09% | 22.97% | -10.92% |
| Return on equity (ROE) | -10.88% | -15.30% | 6.17% | 10.27% | -25.19% |
Penn National Gaming Inc's profitability ratios have shown fluctuations over the past five years.
- Operating Return on Assets (Operating ROA) improved from 2.27% in 2020 to 6.28% in 2021, indicating a strong operational performance. However, it dipped slightly to 5.57% in 2022 before declining further to 2.26% in 2023, and significantly dropping to 0.48% in 2024. This suggests a decline in the company's ability to generate profits from its assets after deducting operating expenses.
- Return on Assets (ROA) was negative at -4.56% in 2020, then turned positive at 2.49% in 2021, showing an improvement in asset utilization efficiency. However, it decreased to 1.27% in 2022, turned negative again at -3.05% in 2023, and improved slightly to -2.04% in 2024. This indicates inconsistency in the company's ability to generate profits from its total assets.
- Return on Total Capital saw a significant improvement from -10.92% in 2020 to 22.97% in 2021, and further to 27.09% in 2022, reflecting efficient utilization of both debt and equity capital to generate profits. However, it declined to -1.09% in 2023 and rebounded to 4.51% in 2024, indicating some volatility in the company's capital efficiency.
- Return on Equity (ROE) was negative at -25.19% in 2020, then improved to 10.27% in 2021, showing a positive performance in generating returns for shareholders. However, it declined to 6.17% in 2022, turned negative again at -15.30% in 2023, and further dropped to -10.88% in 2024. This suggests a decline in the company's ability to generate returns for its shareholders.
Overall, Penn National Gaming Inc's profitability ratios demonstrate a mix of improvements and declines, indicating fluctuations in profitability and efficiency in utilizing assets and capital over the five-year period. Further analysis and comparisons with industry peers may provide more insights into the company's financial performance.