Penn National Gaming Inc (PENN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 129,200 | -124,900 | -977,900 | -906,900 | -103,200 | 475,700 | 1,468,700 | 1,564,000 | 1,004,000 | 867,500 | 869,900 | 964,500 | 941,100 | 944,100 | 987,500 | 530,400 | -237,600 | -362,700 | -434,800 | -122,765 |
| Interest expense (ttm) | US$ in thousands | 470,500 | 475,500 | 474,600 | 470,800 | 464,700 | 549,600 | 630,600 | 709,900 | 757,700 | 697,300 | 644,000 | 587,300 | 562,400 | 555,400 | 552,500 | 549,500 | 543,400 | 541,000 | 532,200 | 532,039 |
| Interest coverage | 0.27 | -0.26 | -2.06 | -1.93 | -0.22 | 0.87 | 2.33 | 2.20 | 1.33 | 1.24 | 1.35 | 1.64 | 1.67 | 1.70 | 1.79 | 0.97 | -0.44 | -0.67 | -0.82 | -0.23 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $129,200K ÷ $470,500K
= 0.27
The interest coverage ratio of Penn National Gaming Inc has shown a fluctuating trend over the quarters. From March 31, 2020, to September 30, 2021, the company experienced negative interest coverage ratios, indicating an inability to cover its interest expenses with its earnings. However, starting from March 31, 2021, the interest coverage ratio turned positive, indicating an improvement in the company's ability to meet its interest obligations.
The most recent data as of December 31, 2024, shows an interest coverage ratio of 0.27, suggesting that the company's earnings are just sufficient to cover its interest expenses. It is worth noting that a ratio below 1 indicates that the company is not generating enough earnings to meet its interest payments, which could raise concerns about its financial stability and debt repayment capabilities.
Overall, Penn National Gaming Inc has been working on improving its interest coverage ratio, as reflected in the recent positive ratios. However, sustained efforts are needed to ensure the company maintains a healthy interest coverage ratio to meet its financial obligations effectively.
Peer comparison
Dec 31, 2024