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.


Peer comparison

Dec 31, 2023