Churchill Downs Incorporated (CHDN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 5.49 7.00 6.19 5.66 4.46 0.18 0.17 4.32 4.24 3.50 3.62 4.54 4.20 4.17 4.69 5.52 4.98 4.88 4.55 6.57
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
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
Working capital turnover — — — — — 1.29 1.15 18.58 15.00 8.60 8.92 27.05 — 3.15 3.11 2.64 — 48.59 29.80 —

The receivables turnover ratio for Churchill Downs, Inc. has been relatively stable over the quarters, indicating that the company efficiently collects its accounts receivable. The higher the ratio, the better the company is at converting its credit sales into cash.

In contrast, the payables turnover ratio has shown some fluctuation but remains within a reasonable range. A higher payables turnover ratio suggests the company is paying its suppliers more frequently, which can be positive if managed effectively.

The working capital turnover ratio was not provided for Q4 2023, but it showed erratic behavior in previous quarters. It is essential for the company to effectively utilize its working capital to generate revenue; a higher turnover indicates efficient utilization of working capital.

Overall, Churchill Downs, Inc. appears to manage its receivables and payables effectively to support its operational activities. However, monitoring the working capital turnover ratio more closely could provide valuable insights into the company's working capital management efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 66.53 52.17 58.93 64.53 81.83 2,085.38 2,138.99 84.51 86.06 104.20 100.87 80.37 86.87 87.53 77.78 66.14 73.32 74.87 80.28 55.55
Days of sales outstanding (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
Number of days of payables days 136.41 139.28 144.21 147.65 158.96 143.76 187.21 125.02 109.22 136.38 181.48 125.07 114.59 164.42 165.24 122.27 91.53 128.98 201.07 106.24

The activity ratios of Churchill Downs, Inc. provide insights into how efficiently the company manages its inventory, receivables, and payables.

Days of Inventory on Hand (DOH): Unfortunately, there is no data available for Days of Inventory on Hand. Without this information, we can't assess how quickly Churchill Downs, Inc. is able to convert its inventory into sales.

Days of Sales Outstanding (DSO): The Days of Sales Outstanding has shown a varying trend over the quarters, with Q2 2023 and Q1 2023 having the lowest values of 13.24 days and 13.47 days respectively. This indicates that in these quarters, Churchill Downs, Inc. was able to collect its accounts receivable more quickly, reflecting efficient management in collecting payments from customers.

Number of Days of Payables: The Number of Days of Payables has also fluctuated, with Q2 2022 marking the highest value at 63.26 days and Q1 2022 having the lowest at 47.20 days. This suggests that the company took longer to pay its suppliers in Q2 2022 compared to other quarters, potentially affecting relationships with vendors.

Overall, the company's performance in managing its receivables and payables seems to be relatively efficient, as indicated by the lower DSO values and somewhat stable payables turnover. However, the absence of data for Days of Inventory on Hand hinders a comprehensive evaluation of Churchill Downs, Inc.'s overall activity efficiency.

Long-term

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
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
Total asset turnover 0.33 0.34 0.33 0.32 0.29 0.36 0.37 0.54 0.54 0.51 0.49 0.40 0.35 0.32 0.32 0.41 0.52 0.49 0.46 0.44

Churchill Downs, Inc.'s fixed asset turnover ratio provides insights into how efficiently the company generates revenue from its long-term assets. The trend over the past eight quarters shows a relatively stable performance, fluctuating between 0.91 and 1.58. Q2 and Q1 of 2022 were the strongest periods, with ratios above 1.50, indicating that the company was able to generate revenue efficiently from its fixed assets during those quarters.

On the other hand, the total asset turnover ratio reflects Churchill Downs, Inc.'s ability to generate revenue from all its assets, including both fixed and current assets. The trend demonstrates consistency over the quarters, hovering around 0.30 to 0.40, except for a notable spike in Q1 of 2022, where it reached 0.54, indicating a peak in revenue generation efficiency from total assets during that period.

Overall, the fixed asset turnover suggests that Churchill Downs, Inc. has been able to maintain a relatively stable level of efficiency in generating revenue from its long-term assets. In contrast, the total asset turnover shows a consistent performance in generating revenue from all assets, with a temporary peak observed in Q1 of 2022.