PENN Entertainment (BSP:P2EN34) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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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 Dec. 2023 was R$-871 Mil. PENN Entertainment's Interest Expense for the three months ended in Dec. 2023 was R$-581 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:

BSP:P2EN34' s Interest Coverage Range Over the Past 10 Years
Min: 0.39 Med: 1.17 Max: 1.88
Current: 0.78

BSP:P2EN34's Interest Coverage is ranked worse than
89.09% of 605 companies
in the Travel & Leisure industry
Industry Median: 5.02 vs BSP:P2EN34: 0.78

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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 1.39 [6] => 0.39 [7] => 1.88 [8] => 1.44 [9] => 0.78 )

PENN Entertainment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.39

0.39

1.88

1.44

0.78

PENN Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.26	1.76	1.78	1.16	-

Competitive Comparison

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 Interest Coverage Distribution

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 R$-2,277 Mil. Its Operating Income was R$1,782 Mil. And its Long-Term Debt & Capital Lease Obligation was R$54,440 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1781.567	/	-2276.937
	=	0.78

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

Here, for the three months ended in Dec. 2023, PENN Entertainment's Interest Expense was R$-581 Mil. Its Operating Income was R$-871 Mil. And its Long-Term Debt & Capital Lease Obligation was R$54,440 Mil.

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

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

PENN Entertainment (BSP:P2EN34) 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 (BSP:P2EN34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » PENN Entertainment Inc (BSP:P2EN34) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PENN:USA PN1:Germany

Address

825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610

Website

https://www.pngaming.com

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.

PENN Entertainment (BSP:P2EN34) Headlines

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