Penn National Gaming Inc (PENN)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	72,500	363,600	974,000	1,059,600	333,600
Total assets	US$ in thousands	15,261,700	16,064,200	17,502,100	16,872,100	14,667,300
Operating ROA		0.48%	2.26%	5.57%	6.28%	2.27%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $72,500K ÷ $15,261,700K
= 0.48%

Operating Return on Assets (ROA) measures a company's ability to generate operating profits from its assets. In the case of Penn National Gaming Inc, the trend in operating ROA over the past five years shows some fluctuations.

As of December 31, 2020, Penn National Gaming Inc had an operating ROA of 2.27%, indicating that the company earned $0.0227 in operating profit for every dollar of assets it had. The following year, by December 31, 2021, the operating ROA improved significantly to 6.28%, suggesting more efficient utilization of assets to generate operating income.

In the subsequent years, the operating ROA remained relatively stable, standing at 5.57% on December 31, 2022, and decreasing slightly to 2.26% by December 31, 2023. This decline may raise concerns about the company's ability to maintain profitability relative to its asset base.

The most recent data point as of December 31, 2024, shows a notable decrease in operating ROA to 0.48%. This significant drop could signal challenges in generating operating income compared to the level of assets employed.

Overall, while Penn National Gaming Inc experienced fluctuations in its operating ROA over the past five years, with some periods of improvement and others of decline, the recent sharp decrease may warrant further investigation into the company's operational efficiency and asset management strategies.