Penn National Gaming Inc (PENN)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	4,045,100	4,464,800	4,116,100	1,441,900	3,527,100
Revenue	US$ in thousands	6,362,900	6,401,700	5,905,000	3,578,700	5,301,400
Gross profit margin		63.57%	69.74%	69.71%	40.29%	66.53%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,045,100K ÷ $6,362,900K
= 63.57%

The gross profit margin of PENN Entertainment Inc has exhibited a declining trend over the past five years. It decreased from 44.27% in 2019 to 37.12% in 2023. This indicates a reduction in the percentage of revenue that remains after accounting for the cost of goods sold. The decreasing trend may suggest challenges in managing production costs or pricing strategies. It is essential for the company to closely monitor and address factors influencing its gross profit margin to ensure sustainable profitability and operational efficiency.