Penn National Gaming Inc (PENN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -690,200 | 974,000 | 1,059,600 | -410,200 | 571,900 |
| Total assets | US$ in thousands | 16,064,200 | 17,502,100 | 16,872,100 | 14,667,300 | 14,194,500 |
| Operating ROA | -4.30% | 5.57% | 6.28% | -2.80% | 4.03% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-690,200K ÷ $16,064,200K
= -4.30%
Operating ROA measures how effectively a company is generating operating income from its assets. In the case of PENN Entertainment Inc, the operating ROA has fluctuated over the past five years. The trend shows a decrease from 6.28% in 2021 to 2.26% in 2023, indicating a possible decline in the company's profitability relative to its assets. In 2022, there was a relatively high operating ROA of 6.24%, suggesting efficient use of assets to generate operating income. The lower figures in 2020 and 2019 (1.45% and 5.25% respectively) signify varying levels of profitability over the years.
Overall, the fluctuation in operating ROA for PENN Entertainment Inc highlights the importance of closely monitoring the company's asset utilization and profitability to ensure sustainable financial performance. It will be essential for the company to assess its operational efficiency and potentially implement strategies to enhance profitability from its assets in the future.
Peer comparison
Dec 31, 2023