Churchill Downs Incorporated (CHDN)

Payables 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
Cost of revenue (ttm)	US$ in thousands	424,100	442,900	415,600	359,200	334,100	277,000	271,200	282,900	272,700	247,300	250,400	218,000	225,200	240,200	233,700	240,600	230,500	214,500	194,600	247,700
Payables	US$ in thousands	158,500	169,000	164,200	145,300	145,500	109,100	139,100	96,900	81,600	92,400	124,500	74,700	70,700	108,200	105,800	80,600	57,800	75,800	107,200	72,100
Payables turnover		2.68	2.62	2.53	2.47	2.30	2.54	1.95	2.92	3.34	2.68	2.01	2.92	3.19	2.22	2.21	2.99	3.99	2.83	1.82	3.44

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $424,100K ÷ $158,500K
= 2.68

The payables turnover ratio for Churchill Downs, Inc. demonstrates the efficiency with which the company is managing its trade payables. The trend over the past eight quarters shows fluctuations, with Q4 2023 having a payables turnover ratio of 7.67, indicating that the company was able to pay off its suppliers approximately 7.67 times during the quarter.

The company's payables turnover ratio has generally been above 6, suggesting that Churchill Downs, Inc. is efficiently managing its suppliers and payments. Higher ratios indicate that the company is taking fewer days to pay off its trade payables, which can be seen as a positive sign of effective cash management and strong supplier relationships.

Overall, the trend in Churchill Downs, Inc.'s payables turnover ratio indicates a generally stable and efficient management of trade payables, with some fluctuations occurring over the quarters. It would be crucial for the company to continue monitoring this ratio to ensure the sustainability of its payment practices and relationships with suppliers.