Penn National Gaming Inc (PENN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.33 | 5.02 | 4.86 | 4.12 | 5.52 |
Based on the provided data, Penn National Gaming Inc has consistently maintained a strong solvency position over the years, as indicated by the following key solvency ratios:
1. Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 for each year from 2020 to 2024. This implies that Penn National Gaming Inc has not relied heavily on debt to finance its assets, indicating a low risk of financial distress related to debt obligations.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 for the same period. This suggests that the company's capital structure is predominantly composed of equity rather than debt, reflecting a favorable financial position in terms of capital stability.
3. Debt-to-equity ratio: Penn National Gaming Inc also reported a debt-to-equity ratio of 0.00 across all years from 2020 to 2024. This indicates that the company's debt levels are negligible compared to its equity, reinforcing the company's strong financial health and minimal reliance on debt financing.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent to which a company relies on debt to fund its operations, showed a decreasing trend from 2020 to 2022 (5.52 to 4.86) but increased slightly in 2023 and 2024 (5.02 to 5.33). While the ratios indicate some fluctuation, they overall reflect a moderate level of financial leverage, with the company maintaining a stable capital structure.
In conclusion, based on the solvency ratios analyzed, Penn National Gaming Inc appears to have a solid financial position with minimal debt exposure and a well-balanced capital structure, indicating a low risk of insolvency and financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.27 | -0.08 | 1.29 | 1.68 | -0.53 |
The interest coverage ratio for Penn National Gaming Inc has been fluctuating over the past five years.
- As of December 31, 2020, the interest coverage ratio was negative at -0.53, indicating that the company's operating income was insufficient to cover its interest expenses. This is a concerning sign for the company's financial health.
- By December 31, 2021, the interest coverage ratio improved to 1.68, suggesting that the company's operating income was able to cover its interest expenses, although still at a relatively low level.
- However, the ratio decreased to 1.29 by December 31, 2022, indicating a slight decline in the company's ability to cover its interest obligations with operating income.
- The ratio further deteriorated to -0.08 as of December 31, 2023, once again showing a concerning negative trend where the company's operating income is insufficient to cover its interest expenses.
- By December 31, 2024, the interest coverage ratio slightly improved to 0.27, but it remains at a low level, suggesting that the company's ability to meet its interest payments with operating income is still weak.
In conclusion, the interest coverage ratio for Penn National Gaming Inc has shown inconsistency and weakness over the years, with periods of improvement followed by setbacks. Management should closely monitor and address this ratio to ensure the company's financial stability and sustainability.