Churchill Downs Incorporated (CHDN)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		19.44	21.39	27.56	27.10	18.95	24.42	26.06	15.47	14.75	14.35	16.26	9.81	12.27	11.27	12.16	21.35	25.67	34.46	16.25	16.90
DSO	days	18.77	17.06	13.24	13.47	19.26	14.95	14.01	23.59	24.75	25.44	22.45	37.20	29.75	32.37	30.02	17.10	14.22	10.59	22.46	21.60

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.44
= 18.77

To analyze Churchill Downs, Inc.'s days of sales outstanding (DSO), we observe fluctuations in the DSO metric over the past eight quarters. DSO indicates the average number of days it takes for the company to collect revenue after a sale. A lower DSO is usually preferred as it signifies efficient collections.

In Q4 2023, the DSO was 17.72 days, a slight increase from the previous quarter's 16.57 days. Despite this uptick, the DSO remained relatively stable compared to earlier periods.

Looking further back, in Q2 2023, the DSO reduced significantly to 13.24 days, indicating improved collection efficiency. This trend continued into Q1 2023 at 13.47 days, displaying consistency in prompt revenue collection.

Comparing current DSO levels with the same quarter in the prior year, there has been an improvement, as evidenced by a decline from 19.26 days in Q4 2022 to 17.72 days in Q4 2023. The company's focus on enhancing collection processes is evident from the decreasing DSO trend over these quarters.

Notably, Q1 and Q2 of 2022 displayed higher DSO figures of 23.59 days and 14.01 days, respectively, with the Q1 figure indicating a need for improvement in the collection cycle. The subsequent decline in Q2 2022 suggests that management took corrective actions to streamline the collections process.

In conclusion, Churchill Downs, Inc. has shown fluctuations in its DSO over the past eight quarters, with recent periods demonstrating improved efficiency in revenue collection. Continued monitoring of the DSO trend will be crucial for the company to ensure an optimal balance between prompt collections and customer satisfaction.