Churchill Downs Incorporated (CHDN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,323,200 | 2,312,700 | 2,191,200 | 2,005,200 | 1,809,800 | 1,694,500 | 1,704,400 | 1,637,000 | 1,597,200 | 1,510,600 | 1,455,400 | 1,125,400 | 1,054,000 | 1,056,400 | 1,024,900 | 1,317,200 | 1,329,700 | 1,268,100 | 1,183,100 | 1,085,100 |
| Property, plant and equipment | US$ in thousands | 2,538,400 | 2,383,600 | 2,229,900 | 2,095,400 | 1,946,400 | 1,240,900 | 1,130,100 | 1,035,800 | 968,400 | 1,053,400 | 1,057,600 | 1,068,700 | 1,059,800 | 1,081,800 | 1,043,200 | 990,800 | 912,500 | 895,200 | 880,000 | 866,500 |
| Fixed asset turnover | 0.92 | 0.97 | 0.98 | 0.96 | 0.93 | 1.37 | 1.51 | 1.58 | 1.65 | 1.43 | 1.38 | 1.05 | 0.99 | 0.98 | 0.98 | 1.33 | 1.46 | 1.42 | 1.34 | 1.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,323,200K ÷ $2,538,400K
= 0.92
Churchill Downs, Inc.'s fixed asset turnover ratio has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is generating revenue from its investment in fixed assets.
In Q1 2022, the fixed asset turnover was relatively high at 1.58, indicating that the company was able to generate $1.58 in revenue for every dollar invested in fixed assets during that period. This high turnover suggests efficient utilization of fixed assets in revenue generation.
Subsequently, the ratio decreased in the following quarters, reaching a low of 0.91 in Q4 2022. This decline could signal challenges in effectively utilizing fixed assets to generate revenue during that period.
However, the ratio rebounded in Q3 2023 to 1.00, reflecting improved efficiency in revenue generation from fixed assets. In the most recent quarter, Q4 2023, the fixed asset turnover stood at 0.96, showing a slight decrease from the previous quarter but still indicating a reasonable level of efficiency in asset utilization.
Overall, it is important for Churchill Downs, Inc. to monitor its fixed asset turnover ratio closely to ensure optimal utilization of fixed assets in revenue generation and to identify any potential inefficiencies that may impact the company's financial performance.