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Penn National Gaming Inc (NAS:PENN)
Interest Expense
$-459 Mil (TTM As of Sep. 2016)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Penn National Gaming Inc's interest expense for the three months ended in Sep. 2016 was $-114 Mil. Its interest expense for the trailing twelve months (TTM) ended in Sep. 2016 was $-459 Mil.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. Penn National Gaming Inc's Operating Income for the three months ended in Sep. 2016 was $139 Mil. Penn National Gaming Inc's Interest Expense for the three months ended in Sep. 2016 was $-114 Mil. Penn National Gaming Inc's interest coverage for the quarter that ended in Sep. 2016 was 1.22. The higher the ratio, the stronger the company’s financial strength is. Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Penn National Gaming Inc Interest Expense for the trailing twelve months (TTM) ended in Sep. 2016 was -113.577 (Dec. 2015 ) + -116.512 (Mar. 2016 ) + -114.687 (Jun. 2016 ) + -114.349 (Sep. 2016 ) = $-459 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Penn National Gaming Inc's interest expense for the three months ended in Sep. 2016 was $-114 Mil. Its operating income for the three months ended in Sep. 2016 was $139 Mil. And its Long-Term Debt for the three months ended in Sep. 2016 was $5,061 Mil.

Penn National Gaming Inc's Interest Coverage for the quarter that ended in Sep. 2016 is calculated as

Interest Coverage=-1*Operating Income (Q: Sep. 2016 )/Interest Expense (Q: Sep. 2016 )
=-1*139.3/-114.349
=1.22

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The higher the ratio, the stronger the company’s financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Penn National Gaming Inc interest coverage is 1.13, which is low.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Penn National Gaming Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Interest Expense -196-198-170-135-130-100-82-160-425-443

Penn National Gaming Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Interest Expense -105-106-110-108-110-111-114-117-115-114
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