Churchill Downs Incorporated (CHDN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,734,300 | 2,461,700 | 1,809,800 | 1,597,200 | 1,054,000 |
| Property, plant and equipment | US$ in thousands | — | — | 1,978,300 | 994,900 | 1,082,100 |
| Fixed asset turnover | — | — | 0.91 | 1.61 | 0.97 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,734,300K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate revenue from its investment in fixed assets. In the case of Churchill Downs Incorporated, the fixed asset turnover ratio increased from 0.97 in 2020 to 1.61 in 2021, indicating that the company was able to generate more revenue relative to its investment in fixed assets. However, the ratio dropped to 0.91 in 2022, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue.
The absence of values for 2023 and 2024 makes it challenging to determine the trend in the fixed asset turnover ratio for those years. However, it is important for Churchill Downs Incorporated to strive for a higher fixed asset turnover ratio, as a higher ratio generally indicates better utilization of fixed assets to drive sales and profitability. Further analysis would be needed to understand the reasons behind the fluctuations in the fixed asset turnover ratio and to assess the company's performance in terms of asset management efficiency.