Penn National Gaming Inc (PENN)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-311,500	-490,000	222,100	420,800	-669,100
Total stockholders’ equity	US$ in thousands	2,862,700	3,202,100	3,597,700	4,097,800	2,656,200
ROE		-10.88%	-15.30%	6.17%	10.27%	-25.19%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-311,500K ÷ $2,862,700K
= -10.88%

Based on the provided data, Penn National Gaming Inc's return on equity (ROE) has shown volatility over the five-year period from December 31, 2020, to December 31, 2024.

In December 2020, the company's ROE was negative at -25.19%. This indicates that the company's net income was insufficient to generate a positive return for shareholders based on the equity invested.

However, there was a significant improvement in the company's ROE by December 31, 2021, where it stood at 10.27%. This positive ROE suggests that the company generated a profit that exceeded the equity invested, reflecting better management of assets and improved profitability.

In the following years, Penn National Gaming Inc's ROE continued to show a decreasing trend. By December 31, 2022, the ROE dropped to 6.17%, indicating a slight decline in profitability compared to the previous year.

By December 31, 2023, the company's ROE deteriorated further to -15.30%, indicating a significant decline in profitability, potentially due to operational challenges or financial issues.

The downward trend continued in December 31, 2024, with the ROE at -10.88%. This negative ROE suggests that the company's net income was insufficient to generate a positive return for shareholders and signals a continued decline in profitability.

Overall, the fluctuation in Penn National Gaming Inc's ROE over the five-year period indicates varying levels of profitability and the need for the company to focus on improving its financial performance to ensure sustainable returns for its shareholders.