Churchill Downs Incorporated (CHDN)
Receivables 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 |
| Receivables | US$ in thousands | 119,500 | 95,500 | 108,300 | 85,900 | 51,800 |
| Receivables turnover | 18.35 | 18.95 | 14.75 | 12.27 | 25.67 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,193,300K ÷ $119,500K
= 18.35
The receivables turnover ratio for Churchill Downs, Inc. has been relatively stable over the past five years, with a gradual increase from 12.27 in 2020 to 20.60 in 2023. This indicates that the company is efficiently managing its receivables by collecting outstanding debts from customers at a faster pace.
A high receivables turnover ratio suggests that Churchill Downs, Inc. is effectively converting its credit sales into cash, which is a positive sign of liquidity and efficient working capital management. The company's ability to collect receivables quickly may be attributed to its strong credit control policies and effective collection procedures.
Overall, the consistent improvement in receivables turnover reflects positively on Churchill Downs, Inc.'s financial health and operational efficiency in managing its accounts receivable.