Churchill Downs Incorporated (CHDN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,193,300 | 1,809,800 | 1,597,200 | 1,054,000 | 1,329,700 |
| Property, plant and equipment | US$ in thousands | 2,538,400 | 1,946,400 | 968,400 | 1,059,800 | 912,500 |
| Fixed asset turnover | 0.86 | 0.93 | 1.65 | 0.99 | 1.46 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,193,300K ÷ $2,538,400K
= 0.86
The fixed asset turnover ratio measures how efficiently a company uses its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets to generate sales.
Churchill Downs, Inc.'s fixed asset turnover has fluctuated over the five-year period:
- In 2023, the fixed asset turnover was 0.96, indicating that for every dollar of fixed assets, the company generated approximately $0.96 in sales.
- In 2022, the ratio decreased to 0.91, suggesting a slight decrease in the efficiency of utilizing fixed assets to generate revenue.
- The ratio significantly increased in 2021 to 1.61, indicating a more efficient utilization of fixed assets to generate sales.
- In 2020 and 2019, the ratios were 0.97 and 1.42, respectively, showing varied efficiency in utilizing fixed assets for revenue generation.
Overall, the trend in fixed asset turnover for Churchill Downs, Inc. shows some variability, with periods of both improvement and decline in efficiency in utilizing fixed assets for generating sales revenue over the five-year period.