Churchill Downs Incorporated (CHDN)
Working capital 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 |
| Total current assets | US$ in thousands | 412,300 | 400,800 | 344,500 | 501,500 | 235,100 |
| Total current liabilities | US$ in thousands | 89,900 | 755,800 | 621,600 | 395,000 | 424,200 |
| Working capital turnover | 8.48 | — | — | 15.00 | — |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,734,300K ÷ ($412,300K – $89,900K)
= 8.48
Churchill Downs Incorporated's working capital turnover ratio provides insight into the efficiency with which the company is utilizing its working capital to generate revenue. The formula for calculating working capital turnover is sales divided by average working capital.
For Churchill Downs Incorporated, the working capital turnover for December 31, 2021, is 15.00, indicating that the company generated $15 in revenue for every $1 of working capital. This high ratio suggests that the company is efficiently utilizing its working capital to drive sales.
However, the absence of data for other years makes it challenging to assess the trend in working capital turnover over time. It is noted that for December 31, 2024, the working capital turnover ratio declined to 8.48, implying a decrease in efficiency in utilizing working capital to generate revenue compared to the previous year.
Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of Churchill Downs Incorporated's efficiency in managing its working capital.