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.
Peer comparison
Dec 31, 2023