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PENN Entertainment (PENN Entertainment) Beneish M-Score : -2.46 (As of Jun. 24, 2024)


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What is PENN Entertainment Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for PENN Entertainment's Beneish M-Score or its related term are showing as below:

PENN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Med: -2.44   Max: -1.22
Current: -2.46

During the past 13 years, the highest Beneish M-Score of PENN Entertainment was -1.22. The lowest was -3.52. And the median was -2.44.


PENN Entertainment Beneish M-Score Historical Data

The historical data trend for PENN Entertainment's Beneish M-Score 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 Beneish M-Score Chart

PENN Entertainment Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.75 -2.51 -1.58 -2.39 -2.31

PENN Entertainment Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score 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 -1.57 -1.91 -2.03 -2.31 -2.46

Competitive Comparison of PENN Entertainment's Beneish M-Score

For the Resorts & Casinos subindustry, PENN Entertainment's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where PENN Entertainment's Beneish M-Score falls into.



PENN Entertainment Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of PENN Entertainment for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1219+0.528 * 1.2497+0.404 * 0.9139+0.892 * 0.9671+0.115 * 1.239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.335+4.679 * -0.021788-0.327 * 1.0777
=-2.46

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $282 Mil.
Revenue was 1606.9 + 1395.4 + 1619.4 + 1674.8 = $6,297 Mil.
Gross Profit was 476.2 + 317.2 + 649 + 696.4 = $2,139 Mil.
Total Current Assets was $1,393 Mil.
Total Assets was $15,614 Mil.
Property, Plant and Equipment(Net PPE) was $9,676 Mil.
Depreciation, Depletion and Amortization(DDA) was $436 Mil.
Selling, General, & Admin. Expense(SGA) was $1,559 Mil.
Total Current Liabilities was $1,338 Mil.
Long-Term Debt & Capital Lease Obligation was $11,016 Mil.
Net Income was -114.9 + -358.1 + -724.8 + 78.4 = $-1,119 Mil.
Non Operating Income was 5.9 + -121.3 + -916.3 + 13 = $-1,019 Mil.
Cash Flow from Operations was -68.7 + -84.8 + 217 + 176 = $240 Mil.
Total Receivables was $260 Mil.
Revenue was 1673.3 + 1585.6 + 1625 + 1626.9 = $6,511 Mil.
Gross Profit was 699.5 + 670 + 667.9 + 726.5 = $2,764 Mil.
Total Current Assets was $1,753 Mil.
Total Assets was $17,040 Mil.
Property, Plant and Equipment(Net PPE) was $9,859 Mil.
Depreciation, Depletion and Amortization(DDA) was $557 Mil.
Selling, General, & Admin. Expense(SGA) was $1,208 Mil.
Total Current Liabilities was $1,271 Mil.
Long-Term Debt & Capital Lease Obligation was $11,239 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(282.3 / 6296.5) / (260.2 / 6510.8)
=0.044834 / 0.039964
=1.1219

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(2763.9 / 6510.8) / (2138.8 / 6296.5)
=0.42451 / 0.339681
=1.2497

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1392.9 + 9675.8) / 15614.4) / (1 - (1753.4 + 9858.5) / 17040)
=0.291122 / 0.31855
=0.9139

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=6296.5 / 6510.8
=0.9671

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(556.8 / (556.8 + 9858.5)) / (436.3 / (436.3 + 9675.8))
=0.05346 / 0.043146
=1.239

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1559.4 / 6296.5) / (1207.8 / 6510.8)
=0.247661 / 0.185507
=1.335

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((11015.8 + 1337.7) / 15614.4) / ((11238.5 + 1271) / 17040)
=0.791161 / 0.734126
=1.0777

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-1119.4 - -1018.7 - 239.5) / 15614.4
=-0.021788

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

PENN Entertainment has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.


PENN Entertainment Beneish M-Score Related Terms

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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