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PENN Entertainment (PENN Entertainment) Interest Coverage : 0 (At Loss) (As of Mar. 2024)


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What is PENN Entertainment Interest Coverage?

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 by its Interest Expense. PENN Entertainment's Operating Income for the three months ended in Mar. 2024 was $-21 Mil. PENN Entertainment's Interest Expense for the three months ended in Mar. 2024 was $-119 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. PENN Entertainment Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

PENN' s Interest Coverage Range Over the Past 10 Years
Min: 0.3   Med: 1.17   Max: 1.88
Current: 0.3


PENN's Interest Coverage is ranked worse than
97.52% of 604 companies
in the Travel & Leisure industry
Industry Median: 5.115 vs PENN: 0.30

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 Entertainment Interest Coverage Historical Data

The historical data trend for PENN Entertainment's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

PENN Entertainment Interest Coverage Chart

PENN Entertainment Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.39 0.39 1.88 1.44 0.78

PENN Entertainment Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Interest Coverage Get a 7-Day Free Trial 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 1.76 1.78 1.16 - -

Competitive Comparison of PENN Entertainment's Interest Coverage

For the Resorts & Casinos subindustry, PENN Entertainment's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where PENN Entertainment's Interest Coverage falls into.



PENN Entertainment Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


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 Entertainment's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, PENN Entertainment's Interest Expense was $-465 Mil. Its Operating Income was $364 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,111 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*363.6/-464.7
=0.78

PENN Entertainment's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, PENN Entertainment's Interest Expense was $-119 Mil. Its Operating Income was $-21 Mil. And its Long-Term Debt & Capital Lease Obligation was $11,016 Mil.

PENN Entertainment did not have earnings to cover the interest expense.

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


PENN Entertainment  (NAS:PENN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


PENN Entertainment Interest Coverage Related Terms

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


PENN Entertainment (PENN Entertainment) Business Description

Traded in Other Exchanges
Address
825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 90% of total sales in 2022 (10% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates high-30% EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
Executives
Christopher Byron Rogers officer: EVP and Chief Strategy Officer 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Jay A Snowden officer: EVP-Chief Operating Officer 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
Jane Scaccetti director 3111 W ALLEGHENY AVE, PHILADELPHIA PA 19132
Felicia Hendrix officer: EVP and CFO 825 BERKSHIRE BLVD., WYOMISSING PA 19610
David A Handler director 845 BERKSHIRE BLVD, SUITE 200, WYOMISSING PA 19610
Kohn Barbara Shattuck director PENN NATIONAL GAMING, INC, 825 BERKSHIRE BLVE, SUITE 200, WYOMISSING PA 19610
Christine Labombard officer: SVP and CAO 825 BERKSHIRE BOULEVARD, WYOMISSING PA 19610
Saul Reibstein officer: EVP-Finance, CFO & Treasurer C/O VISHAY PRECISION GROUP, INC., 3 GREAT VALLEY PARKWAY, SUITE 150, MALVERN PA 19355
Gupta Vimla Black director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Todd George officer: EVP, Operations 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Marla Kaplowitz director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Ronald J Naples director 96 S. GEORGE STREET, SUITE 500, YORK PA 17401
Peter M Carlino director, 10 percent owner, officer: Chairman 845 BERKSHIRE BLVD, SUITE 200, WYOMISSING PA 19610
Harper H. Ko officer: EVP, CLO and Sec. 7250 S. TENAYA WAY, SUITE 100, LAS VEGAS NV 89113
Carl Sottosanti officer: SVP,Gen Counsel & Secretary 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610