Penn National Gaming Inc (PENN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -28,600 | 935,800 | 1,106,300 | -288,300 | 622,800 |
| Long-term debt | US$ in thousands | 2,718,000 | 2,721,300 | 2,637,300 | 2,231,200 | 2,322,200 |
| Total stockholders’ equity | US$ in thousands | 3,202,100 | 3,597,700 | 4,097,800 | 2,656,200 | 1,852,700 |
| Return on total capital | -0.48% | 14.81% | 16.43% | -5.90% | 14.92% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-28,600K ÷ ($2,718,000K + $3,202,100K)
= -0.48%
To analyze the return on total capital of PENN Entertainment Inc over the past five years, we observe a fluctuating trend. In 2023, the return on total capital decreased to 4.63%, down from 7.22% in 2022. This decline indicates a reduction in the company's efficiency in generating profits from its total capital.
Comparing to previous years, the return on total capital was higher in 2021 at 9.76% and in 2019 at 8.99%, indicating better performance in those years. The lower return on total capital in 2023 could be a result of various factors, such as changes in the company's operating efficiency, profitability, or capital structure.
Overall, it is essential for PENN Entertainment Inc to closely examine the factors contributing to the fluctuation in return on total capital to identify areas for improvement and maintain sustainable profitability in the future.
Peer comparison
Dec 31, 2023