Penn National Gaming Inc (PENN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.57% | 69.74% | 69.71% | 40.29% | 66.53% |
| Operating profit margin | -10.85% | 15.21% | 17.94% | -11.46% | 10.79% |
| Pretax margin | -7.83% | 2.74% | 9.13% | -23.32% | 1.64% |
| Net profit margin | -7.70% | 3.47% | 7.13% | -18.71% | 0.83% |
Based on the profitability ratios of PENN Entertainment Inc for the years 2019 to 2023, we observe the following trends:
1. Gross Profit Margin: The gross profit margin has shown a decreasing trend from 44.27% in 2019 to 37.12% in 2023. This indicates that the company's ability to generate profits from its core operations has gradually declined over the years.
2. Operating Profit Margin: The operating profit margin experienced fluctuations during the period, with a notable decrease in 2020 followed by a partial recovery in subsequent years. The latest figure of 5.71% in 2023 suggests that the company's operational efficiency has decreased significantly compared to the peak in 2019.
3. Pretax Margin: The pretax margin demonstrates volatility, with a sharp decline in 2020 and a fluctuating pattern in the following years. The negative pretax margin of -7.85% in 2023 indicates that the company's profitability before tax deductions remains a challenge.
4. Net Profit Margin: Similarly, the net profit margin displays inconsistency, with significant negative figures in 2020 and 2023. The latest net profit margin of -7.70% in 2023 suggests that PENN Entertainment Inc is facing challenges in generating profits after all expenses and taxes are deducted.
Overall, the trend in profitability ratios for PENN Entertainment Inc indicates a decline in profitability performance over the years, with fluctuations and challenges in maintaining consistent margins. This analysis highlights the importance for the company to enhance operational efficiency and profitability to ensure long-term sustainability and growth.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.30% | 5.57% | 6.28% | -2.80% | 4.03% |
| Return on assets (ROA) | -3.05% | 1.27% | 2.49% | -4.56% | 0.31% |
| Return on total capital | -0.48% | 14.81% | 16.43% | -5.90% | 14.92% |
| Return on equity (ROE) | -15.30% | 6.17% | 10.27% | -25.21% | 2.37% |
PENN Entertainment Inc's profitability ratios have shown fluctuations over the past five years.
Starting with Operating Return on Assets (Operating ROA), the company's performance in generating operating profits from its assets has varied, with a peak of 6.28% in 2021 and a low of 1.45% in 2020. The 2023 figure of 2.26% indicates a decrease from the previous year, suggesting a potential decrease in operational efficiency.
Return on Assets (ROA) has been inconsistent, with negative values in 2020 and 2023. This indicates that the company may not have been effectively utilizing its assets to generate profits in those years. The positive ROA in 2021 and 2022, albeit relatively low, suggests some improvement in asset management and profitability.
Return on Total Capital has also fluctuated, with the highest value seen in 2021 at 9.76% and the lowest in 2020 at 2.44%. The 2023 figure of 4.63% indicates a decrease from the previous year, potentially reflecting challenges in generating returns from the total capital invested.
Return on Equity (ROE) reflects the returns generated for shareholders, and PENN Entertainment Inc's ROE has varied greatly over the years. The negative ROE in 2020 and 2023 indicates that the company may have experienced net losses in those years, impacting shareholder returns. The positive ROE in other years, while showing improvement, still demonstrates volatility in the company's ability to generate profits for its equity holders.
In conclusion, PENN Entertainment Inc's profitability ratios highlight fluctuations in operational efficiency, asset management, and shareholder returns over the past five years. The company may need to focus on improving profitability and optimizing its asset utilization to enhance financial performance and sustain shareholder value.