Penn National Gaming Inc (PENN)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,718,000	2,721,300	2,637,300	2,231,200	2,322,200
Total assets	US$ in thousands	16,064,200	17,502,100	16,872,100	14,667,300	14,194,500
Debt-to-assets ratio		0.17	0.16	0.16	0.15	0.16

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,718,000K ÷ $16,064,200K
= 0.17

The debt-to-assets ratio of PENN Entertainment Inc has fluctuated over the past five years, indicating varying levels of leverage and financial risk. The ratio stood at 0.32 at the end of 2023, showing an improvement from 0.68 in the previous year. This suggests that the company's debt relative to its total assets decreased significantly, which may indicate a more conservative approach to financing its operations.

In 2021, the ratio was 0.42, slightly higher than in 2020 when it was 0.45. However, compared to 2019 when the ratio was 0.48, there has been a downward trend in the debt-to-assets ratio over the past three years. This could signify a positive shift towards a stronger financial position with lower reliance on debt to fund its assets.

It is essential to further investigate the reasons behind these fluctuations in the debt-to-assets ratio to understand the company's strategic decisions regarding debt management and capital structure. Overall, a decreasing trend in the ratio is generally perceived positively by investors and creditors as it indicates a lower level of financial risk and potentially improved financial health for PENN Entertainment Inc.