Penn National Gaming Inc (PENN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 129,200 | -34,900 | 974,600 | 941,100 | -290,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,862,700 | 3,202,100 | 3,597,700 | 4,097,800 | 2,656,200 |
| Return on total capital | 4.51% | -1.09% | 27.09% | 22.97% | -10.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $129,200K ÷ ($—K + $2,862,700K)
= 4.51%
Penn National Gaming Inc's return on total capital has shown fluctuations over the past five years.
In December 31, 2020, the return on total capital was negative at -10.92%, indicating that the company's total capital was not generating sufficient returns to cover its costs.
However, there was a significant improvement in the financial performance by December 31, 2021, with a return on total capital of 22.97%. This suggests that the company's capital investments were yielding favorable returns.
By December 31, 2022, the return on total capital further increased to 27.09%, indicating continued improvement in the company's efficiency in generating profits from its invested capital.
In December 31, 2023, there was a slight decline in the return on total capital to -1.09%, reflecting a decrease in the company's ability to generate profits relative to its total capital base.
Lastly, by December 31, 2024, the return on total capital rose to 4.51%, showing a modest improvement in the company's profitability compared to the previous year.
Overall, Penn National Gaming Inc's return on total capital has been volatile, with fluctuations in profitability over the years. It is essential for the company to consistently monitor and manage its capital investments to ensure sustainable and positive returns in the future.
Peer comparison
Dec 31, 2024