Churchill Downs Incorporated (CHDN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 154.81 | — | — | — | 21.55 | 25.51 | 22.15 | 21.42 | 16.60 | 0.74 | 0.74 | 17.93 | 17.90 | 15.52 | 15.28 | 18.44 | 16.05 | 15.26 | 17.53 | 22.94 | |
| DOH | days | 2.36 | — | — | — | 16.94 | 14.31 | 16.47 | 17.04 | 21.99 | 491.20 | 490.44 | 20.35 | 20.39 | 23.52 | 23.89 | 19.79 | 22.74 | 23.93 | 20.82 | 15.91 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 154.81
= 2.36
The days of inventory on hand (DOH) for Churchill Downs Incorporated has shown some fluctuations over the past few years. From March 2020 to September 2022, the DOH figures were within a reasonable range, indicating efficient management of inventory levels. However, there was an anomaly in June 2022 and September 2022, where the DOH significantly spiked to 490.44 days and 491.20 days, respectively. This sudden increase may signal potential issues or errors in inventory management or reporting during that period.
Subsequently, the DOH values decreased back to more typical levels in the following quarters, staying around 20 days on average. In December 2024, the DOH dropped to 2.36 days, which is exceptionally low and may indicate a swift turnover of inventory or possibly an issue with inventory reporting accuracy.
Overall, while fluctuations in DOH are normal for any business, the extreme spikes observed in 2022 and the sharp decline in 2024 should be further investigated to ensure the accuracy of inventory management practices and financial reporting. It is essential for Churchill Downs Incorporated to monitor its inventory levels closely to optimize efficiency and maintain financial stability.