Penn National Gaming Inc (PENN)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,202,100	3,597,700	4,097,800	2,656,200	1,852,700
Debt-to-capital ratio		0.46	0.43	0.39	0.46	0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,718,000K ÷ ($2,718,000K + $3,202,100K)
= 0.46

The debt-to-capital ratio of PENN Entertainment Inc has fluctuated over the past five years, ranging from 0.62 to 0.78. A lower ratio indicates less reliance on debt to finance operations and indicates a stronger capital base to support the company's activities.

In 2023, the ratio decreased to 0.62, which suggests a reduction in the proportion of debt relative to total capital compared to the previous year. This may indicate improved financial stability and a stronger ability to meet financial obligations using equity financing rather than debt.

Looking back at the trend, there was a notable peak in the ratio in 2019 at 0.78, followed by a gradual decrease over the subsequent years. This downward trend could signal a shift towards a more conservative capital structure or a strategic effort to reduce financial risk.

Overall, the debt-to-capital ratio of PENN Entertainment Inc has shown variability but has generally been within a moderate range, indicating a balance between debt and equity in funding the company's operations. It will be important to continue monitoring this ratio to assess the company's leverage and financial health in the future.