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PENN Entertainment (NAS:PENN) ROE %

: 13.38% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PENN Entertainment's annualized net income for the quarter that ended in Sep. 2022 was $494 Mil. PENN Entertainment's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $3,692 Mil. Therefore, PENN Entertainment's annualized ROE % for the quarter that ended in Sep. 2022 was 13.38%.

The historical rank and industry rank for PENN Entertainment's ROE % or its related term are showing as below:

PENN' s ROE % Range Over the Past 10 Years
Min: -68.38   Med: 12.46   Max: Negative Equity
Current: 6.65

During the past 13 years, PENN Entertainment's highest ROE % was Negative Equity%. The lowest was -68.38%. And the median was 12.46%.

PENN's ROE % is ranked better than
61.19% of 791 companies
in the Travel & Leisure industry
Industry Median: 2.15 vs PENN: 6.65

PENN Entertainment (NAS:PENN) ROE % Historical Data

The historical data trend for PENN Entertainment's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PENN Entertainment Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Equity 28.42 3.40 -29.70 12.46

PENN Entertainment Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.42 5.02 5.14 2.70 13.38

PENN Entertainment (NAS:PENN) ROE % Competitive Comparison

For the Resorts & Casinos subindustry, PENN Entertainment's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

PENN Entertainment (NAS:PENN) ROE % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's ROE % distribution charts can be found below:

* The bar in red indicates where PENN Entertainment's ROE % falls into.



PENN Entertainment ROE % Calculation

PENN Entertainment's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=420.8/( (2656.2+4097.8)/ 2 )
=420.8/3377
=12.46 %

PENN Entertainment's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=494/( (3766.8+3617.1)/ 2 )
=494/3691.95
=13.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


PENN Entertainment  (NAS:PENN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=494/3691.95
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(494 / 6500)*(6500 / 17707.95)*(17707.95 / 3691.95)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.6 %*0.3671*4.7964
=ROA %*Equity Multiplier
=2.79 %*4.7964
=13.38 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=494/3691.95
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (494 / -235.2) * (-235.2 / 965.2) * (965.2 / 6500) * (6500 / 17707.95) * (17707.95 / 3691.95)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -2.1003 * -0.2437 * 14.85 % * 0.3671 * 4.7964
=13.38 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


PENN Entertainment ROE % Related Terms

Thank you for viewing the detailed overview of PENN Entertainment's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


PENN Entertainment (NAS:PENN) Business Description

PENN Entertainment logo
Traded in Other Exchanges
Address
825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610
Penn National Gaming Inc is the operator of gaming and racing properties and video gaming terminal operations in the U.S. It operates retail sports betting across the company's portfolio, as well as online sports betting, online social casino, bingo, and online casinos. It offers live sports betting at its properties in Indiana, Iowa, Mississippi, Nevada, Pennsylvania, and West Virginia.
Executives
Black Gupta Vimla director 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Hendrix Felicia officer: EVP and CFO 825 BERKSHIRE BLVD. WYOMISSING PA 19610
George Todd officer: EVP, Operations 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Kaplowitz Marla director 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Labombard Christine officer: SVP and CAO 825 BERKSHIRE BOULEVARD WYOMISSING PA 19610
Naples Ronald J director 96 S. GEORGE STREET SUITE 500 YORK PA 17401
Scaccetti Jane director 3111 W ALLEGHENY AVE PHILADELPHIA PA 19132
Rogers Christopher Byron officer: EVP and Chief Strategy Officer 825 BERKSHIRE BLVD. WYOMISSING PA 19610
Ko Harper H. officer: EVP, CLO and Sec. 7250 S. TENAYA WAY SUITE 100 LAS VEGAS NV 89113
Williams David Edward officer: EVP and CFO 825 BERKSHIRE BOULEVARD WYOMISSING PA 19610
Reibstein Saul officer: EVP-Finance, CFO & Treasurer C/O VISHAY PRECISION GROUP, INC. 3 GREAT VALLEY PARKWAY, SUITE 150 MALVERN PA 19355
Sottosanti Carl officer: SVP,Gen Counsel & Secretary 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Snowden Jay A officer: EVP-Chief Operating Officer 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Fair William J officer: EVP - Chief Dev Officer 825 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610
Burke Desiree A. officer: V. P. and Chief Accounting Off 845 BERKSHIRE BOULEVARD SUITE 200 WYOMISSING PA 19610

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