Penn National Gaming Inc (PENN)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -28,600 | 935,800 | 1,106,300 | -288,300 | 622,800 |
| Interest expense | US$ in thousands | 469,600 | 760,100 | 566,900 | 546,300 | 535,900 |
| Interest coverage | -0.06 | 1.23 | 1.95 | -0.53 | 1.16 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-28,600K ÷ $469,600K
= -0.06
The interest coverage ratio of PENN Entertainment Inc has fluctuated over the past five years. In 2023, the interest coverage ratio decreased to 0.92 from 1.51 in 2022. This decrease indicates that the company's ability to cover its interest expenses with its operating income has weakened. In 2021 and 2019, the interest coverage ratios were 1.96 and 1.45, respectively, showing stronger ability to meet interest obligations. However, in 2020, the interest coverage ratio dropped significantly to 0.42, raising concerns about the company's financial health and ability to service its debt. Overall, the downward trend in the interest coverage ratio over the years may suggest a deteriorating financial position and potential challenges in meeting interest payments. Further investigation into the company's financial performance and debt obligations is warranted to understand the underlying factors contributing to these fluctuations.
Peer comparison
Dec 31, 2023