GURUFOCUS.COM » STOCK LIST » USA » NAS » PENN Entertainment Inc (NAS:PENN) » Definitions » Altman Z-Score
Switch to:

PENN Entertainment Altman Z-Score

: 0.85 (As of Today)
View and export this data going back to 1994. Start your Free Trial

Warning Sign:

Altman Z-score of 0.86 is in distress zone. This implies bankruptcy possibility in the next two years.

PENN Entertainment has a Altman Z-Score of 0.85, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

PENN' s Altman Z-Score Range Over the Past 10 Years
Min: -0.03   Med: 1.11   Max: 7.35
Current: 0.86

During the past 13 years, PENN Entertainment's highest Altman Z-Score was 7.35. The lowest was -0.03. And the median was 1.11.


PENN Entertainment Altman Z-Score Historical Data

The historical data trend for PENN Entertainment's Altman Z-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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.89 0.52 0.66 0.90 1.05

PENN Entertainment Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score 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 1.26 1.24 1.05 0.91 0.81

Competitive Comparison

For the Resorts & Casinos subindustry, PENN Entertainment's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



PENN Entertainment Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

PENN Entertainment's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0544+1.4*0.0006+3.3*0.0561+0.6*0.4207+1.0*0.351
=0.85

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $17,881 Mil.
Total Current Assets was $2,059 Mil.
Total Current Liabilities was $1,086 Mil.
Retained Earnings was $10 Mil.
Pre-Tax Income was 82.4 + 99.2 + 53.3 + 122.5 = $357 Mil.
Interest Expense was -194.9 + -161.3 + -143.5 + -145.2 = $-645 Mil.
Revenue was 1626.9 + 1564.2 + 1572.5 + 1511.8 = $6,275 Mil.
Market Cap (Today) was $5,938 Mil.
Total Liabilities was $14,115 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(2058.9 - 1085.9)/17880.8
=0.0544

X2=Retained Earnings/Total Assets
=10.2/17880.8
=0.0006

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(357.4 - -644.9)/17880.8
=0.0561

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=5938.167/14114.8
=0.4207

X5=Revenue/Total Assets
=6275.4/17880.8
=0.351

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

PENN Entertainment has a Altman Z-Score of 0.85 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


PENN Entertainment  (NAS:PENN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


PENN Entertainment Altman Z-Score Related Terms

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


PENN Entertainment 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

PENN Entertainment Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)