Penn National Gaming Inc (PENN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.17 | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 | 0.16 | 0.17 | 0.15 | 0.15 | 0.15 | 0.16 | 0.21 | 0.20 | 0.16 | 0.17 | 0.17 | 0.17 |
| Debt-to-capital ratio | 0.46 | 0.44 | 0.39 | 0.39 | 0.43 | 0.43 | 0.42 | 0.41 | 0.39 | 0.46 | 0.43 | 0.45 | 0.46 | 0.47 | 0.67 | 0.69 | 0.56 | 0.55 | 0.57 | 0.55 |
| 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 |
| Financial leverage ratio | 5.02 | 4.64 | 4.04 | 4.08 | 4.86 | 4.85 | 4.75 | 4.57 | 4.12 | 5.13 | 5.10 | 5.40 | 5.52 | 5.62 | 9.51 | 10.90 | 7.66 | 7.38 | 7.57 | 7.25 |
PENN Entertainment Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown consistency around 0.30-0.32 in the recent quarters, indicating that approximately 30% of the company's assets are financed by debt. This suggests a relatively healthy level of asset coverage by debt.
The debt-to-capital ratio has exhibited a slight decreasing trend over the quarters, from 0.77 to 0.55, implying a declining reliance on debt for funding capital expenditures. This trend reflects a more balanced capital structure and potentially reduced financial risk.
The debt-to-equity ratio has shown significant fluctuations, ranging from 1.24 to 3.30 over the quarters. The latest ratio of 1.24 suggests a moderate level of debt relative to equity, which signals improved financial stability compared to the earlier quarters with higher ratios.
The financial leverage ratio has also displayed variability but has generally remained above 4.00, indicating that the company relies considerably on debt to finance its operations. However, the ratio has shown a slight decreasing trend, indicating potential efforts to decrease financial leverage over time.
Overall, the solvency ratios of PENN Entertainment Inc suggest a mixed picture, with improvements in debt levels relative to assets and capital but continuing reliance on debt financing. Continued monitoring of these ratios will be essential to assess the company's long-term financial health and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.06 | 0.93 | 2.25 | 2.07 | 1.23 | 1.25 | 1.55 | 1.89 | 1.95 | 1.90 | 1.92 | 0.97 | -0.53 | -0.76 | -0.91 | -0.27 | 1.16 | 1.17 | 1.15 | 1.15 |
Analysis of PENN Entertainment Inc's interest coverage ratio reveals a fluctuating trend over the past eight quarters. The company's interest coverage ratio has ranged from a low of 0.92 in Q4 2023 to a high of 2.00 in Q1 2022. Generally, an interest coverage ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which could be a cause for concern.
In the most recent quarter, Q4 2023, PENN Entertainment Inc's interest coverage ratio stood at 0.92, indicating a decrease in the company's ability to cover its interest expenses with operating income. This may suggest a potential strain on the company's financial health and its ability to meet debt obligations.
On the positive side, there have been quarters where the interest coverage ratio was above 1, such as Q3 2023, Q2 2023, and Q1 2022. However, the downward trend in the interest coverage ratio in the most recent quarter raises some red flags about the company's financial stability and its ability to service its debt in the future.
Overall, PENN Entertainment Inc's interest coverage ratio analysis indicates a need for closer monitoring of the company's financial performance and its ability to generate sufficient income to cover its interest expenses going forward.