Penn National Gaming Inc (PENN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.16 | 0.16 | 0.15 | 0.16 |
| Debt-to-capital ratio | 0.46 | 0.43 | 0.39 | 0.46 | 0.56 |
| Debt-to-equity ratio | 0.85 | 0.76 | 0.64 | 0.84 | 1.25 |
| Financial leverage ratio | 5.02 | 4.86 | 4.12 | 5.52 | 7.66 |
PENN Entertainment Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent to which its operations are funded by debt.
The trend in the debt-to-assets ratio over the past five years shows a decrease from 0.48 in 2019 to 0.32 in 2023, suggesting the company has improved its ability to cover its obligations with its assets. This decrease indicates a healthier financial position in terms of asset coverage for the company's debts.
The debt-to-capital ratio has also shown a declining trend from 0.78 in 2019 to 0.62 in 2023. A lower debt-to-capital ratio indicates that the company is relying less on debt to finance its operations, which may reduce financial risk and increase financial stability.
The debt-to-equity ratio has decreased from 3.65 in 2019 to 1.62 in 2023, indicating a lower dependency on equity compared to debt for financing the company's assets. This decreasing trend shows an improvement in the company's solvency and financial health.
The financial leverage ratio has fluctuated over the past five years, ranging from 4.12 in 2021 to 7.66 in 2019, with a slight increase to 5.02 in 2023. A high financial leverage ratio suggests that the company is using a higher proportion of debt to finance its assets compared to equity.
Overall, the trend in PENN Entertainment Inc's solvency ratios demonstrates an improvement in its ability to cover long-term obligations with its available assets and a decreasing reliance on debt financing, indicating a stronger financial position and solvency over time.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -0.06 | 1.23 | 1.95 | -0.53 | 1.16 |
PENN Entertainment Inc's interest coverage ratio has fluctuated over the past five years. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to meet interest obligations.
In 2023, the interest coverage ratio decreased to 0.92, indicating that the company's EBIT was insufficient to cover its interest expenses. This could raise concerns about the company's financial flexibility and ability to service its debt obligations.
In 2022 and 2021, the interest coverage ratio improved to 1.51 and 1.96, respectively, demonstrating a better ability to cover interest payments with operating profits. This may indicate improved financial health and reduced risk of default.
In 2020, the interest coverage ratio dropped significantly to 0.42, suggesting a potential strain on the company's ability to pay its interest costs from its earnings. This could signal financial distress and a higher risk for creditors.
In 2019, the interest coverage ratio was 1.45, indicating a moderate ability to cover interest expenses with operating income.
Overall, PENN Entertainment Inc's interest coverage has shown volatility over the years, with some periods indicating challenges in meeting interest obligations. Investors and creditors should closely monitor this ratio as a lower interest coverage ratio may signal financial instability and increased default risk.