Penn National Gaming Inc (PENN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -490,000 | 222,100 | 420,800 | -669,500 | 43,900 |
| Total stockholders’ equity | US$ in thousands | 3,202,100 | 3,597,700 | 4,097,800 | 2,656,200 | 1,852,700 |
| ROE | -15.30% | 6.17% | 10.27% | -25.21% | 2.37% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-490,000K ÷ $3,202,100K
= -15.30%
Based on the data provided, PENN Entertainment Inc's Return on Equity (ROE) has fluctuated over the past five years. In 2023, the company experienced a negative ROE of -15.30%, indicating that the company generated a net loss relative to its shareholders' equity. This significant decrease compared to a positive ROE of 6.17% in 2022 suggests deteriorating profitability and efficiency in the utilization of equity.
The ROE improved in 2022 compared to the previous year, reaching 10.27%. This indicates that the company generated a profit, making effective use of shareholders' equity to grow the business. However, the sharp decline in 2020 with a negative ROE of -25.21% suggests financial challenges or poor performance during that period.
In 2019, the company achieved a modest ROE of 2.37%, indicating some profitability but potentially not maximizing returns for shareholders. Overall, the fluctuation in ROE over the years indicates varying levels of profitability and efficiency in utilizing equity to generate returns for shareholders. Further analysis of the company's financial performance and operational strategies would be necessary to understand the drivers behind these fluctuations.
Peer comparison
Dec 31, 2023