Penn National Gaming Inc (PENN)

Debt-to-equity 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-equity ratio		0.85	0.76	0.64	0.84	1.25

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,718,000K ÷ $3,202,100K
= 0.85

The debt-to-equity ratio of PENN Entertainment Inc has fluctuated over the past five years. In 2023, the ratio stands at 1.62, indicating a decrease from the previous year's 3.30. This suggests that the company has reduced its reliance on debt relative to equity in its capital structure. Compared to the ratios in 2021 (1.75), 2020 (2.51), and 2019 (3.65), the trend shows varying levels of leverage in the company's operations over the years. Overall, a lower debt-to-equity ratio signifies a healthier financial position with lower financial risk due to less dependence on borrowed funds.