PENN Entertainment (BSP:P2EN34) ROCE % : -7.82% (As of Dec. 2023)

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What is PENN Entertainment ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. PENN Entertainment's annualized ROCE % for the quarter that ended in Dec. 2023 was -7.82%.

PENN Entertainment ROCE % Historical Data

The historical data trend for PENN Entertainment's ROCE % 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.

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PENN Entertainment ROCE % Chart

PENN Entertainment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.42

-2.38

7.79

5.60

-0.22

PENN Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															6.26	19.74	5.58	-20.21	-7.82

PENN Entertainment ROCE % Calculation

PENN Entertainment's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-171.003	/	( ( (91805.515 - 6077.845)	+	(78711.367 - 7300.702) )	/ 2 )
	=	-171.003	/	( (85727.67	+	71410.665)	/ 2 )
	=	-171.003	/	78569.1675
	=	-0.22 %

PENN Entertainment's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-5670.048	/	( ( (79851.865 - 6187.203)	+	(78711.367 - 7300.702) )	/ 2 )
	=	-5670.048	/	( ( 73664.662	+	71410.665 )	/ 2 )
	=	-5670.048	/	72537.6635
	=	-7.82 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

PENN Entertainment (BSP:P2EN34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

PENN Entertainment ROCE % Related Terms

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PENN Entertainment (BSP:P2EN34) Business Description

Industry

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

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.

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