Penn National Gaming Inc (PENN)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	2,718,000	2,715,400	2,722,800	2,721,400	2,721,300	2,730,200	2,730,400	2,694,300	2,637,300	2,654,400	2,269,900	2,289,500	2,231,200	2,355,700	3,044,800	2,829,300	2,322,200	2,392,000	2,489,610	2,311,380
Total stockholders’ equity	US$ in thousands	3,202,100	3,482,600	4,210,300	4,176,300	3,597,700	3,617,100	3,766,800	3,953,500	4,097,800	3,071,900	2,958,300	2,756,300	2,656,200	2,633,700	1,506,200	1,278,400	1,852,700	1,939,800	1,891,910	1,861,820
Debt-to-capital ratio		0.46	0.44	0.39	0.39	0.43	0.43	0.42	0.41	0.39	0.46	0.43	0.45	0.46	0.47	0.67	0.69	0.56	0.55	0.57	0.55

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 shown a decreasing trend over the past four quarters, indicating a lower reliance on debt compared to total capital employed in the business. In Q4 2022, the ratio was the highest at 0.77, signifying that 77% of the company's capital was financed through debt. However, there has been a steady decline since then, with the ratio dropping to 0.62 in Q4 2023.

This downward trend suggests that PENN Entertainment Inc has been working to reduce its debt levels in relation to its overall capital structure. A lower debt-to-capital ratio indicates a healthier financial position, as it implies less financial risk and greater financial stability.

Overall, the decreasing debt-to-capital ratio of PENN Entertainment Inc reflects a positive development in the company's capital structure and financial health.