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.