Penn National Gaming Inc (PENN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	6,578,100	1,927,000	2,770,100	2,757,000	1,710,700
Revenue	US$ in thousands	6,578,100	6,362,900	6,401,700	5,905,000	3,578,700
Gross profit margin		100.00%	30.28%	43.27%	46.69%	47.80%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $6,578,100K ÷ $6,578,100K
= 100.00%

The gross profit margin of Penn National Gaming Inc has shown varying trends over the years. As of December 31, 2020, the gross profit margin stood at 47.80%, indicating that the company generated $0.47 in gross profit for every dollar of revenue.

In the following year, the margin slightly decreased to 46.69%, suggesting a slight decline in the efficiency of the company's operations. By December 31, 2022, the gross profit margin further decreased to 43.27%, potentially signaling challenges in maintaining profitability amidst changing market conditions.

However, by December 31, 2023, the gross profit margin experienced a significant drop to 30.28%, indicating a substantial decline in the company's ability to generate profits from its core business activities. This decline may be attributed to various factors such as increased operating costs or a decrease in revenue.

The data for December 31, 2024, shows a surprising 100.00% gross profit margin, which is unusually high and could be an anomaly or a result of unique circumstances such as a one-time gain or a significant cost reduction initiative. It would be advisable to further investigate the reason behind this exceptionally high margin.

Overall, fluctuations in the gross profit margin of Penn National Gaming Inc suggest varying levels of efficiency and profitability in its operations over the years, highlighting the importance of closely monitoring financial performance metrics to assess the company's financial health accurately.