Penn National Gaming Inc (PENN)

Debt-to-equity 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-equity ratio		0.85	0.78	0.65	0.65	0.76	0.75	0.72	0.68	0.64	0.86	0.77	0.83	0.84	0.89	2.02	2.21	1.25	1.23	1.32	1.24

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 shown fluctuations over the past eight quarters. In Q4 2023, the ratio stood at 1.62, indicating that the company had $1.62 in debt for every $1 of equity. This represents an increase from the previous quarter, where the ratio was 1.50. Prior to this, in Q2 and Q1 2023, the ratio stood at 1.24 and 1.25 respectively, showing a decreasing trend from the earlier quarters.

Comparing the recent ratios with those from the same period in the previous year, there has been a substantial improvement. In Q4 2022, the debt-to-equity ratio was 3.30, which has since decreased significantly to 1.62 in Q4 2023. This indicates that the company has effectively reduced its reliance on debt to finance its operations and has strengthened its equity position over time.

Overall, while there were fluctuations in the debt-to-equity ratio of PENN Entertainment Inc over the past eight quarters, the company has demonstrated an improvement in managing its debt levels and optimizing its capital structure to enhance financial stability and sustainability.