Churchill Downs Incorporated (CHDN)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,734,300 | 2,671,300 | 2,615,300 | 2,493,100 | 2,461,700 | 2,380,600 | 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 |
| Total current assets | US$ in thousands | 412,300 | 387,400 | 436,000 | 416,000 | 400,800 | 370,600 | 583,200 | 377,500 | 344,500 | 1,806,300 | 2,004,900 | 520,300 | 501,500 | 528,100 | 532,600 | 346,800 | 235,100 | 806,600 | 817,700 | 843,000 |
| Total current liabilities | US$ in thousands | 729,300 | 710,100 | 763,200 | 837,200 | 755,800 | 669,900 | 648,000 | 694,400 | 621,600 | 491,700 | 528,400 | 432,200 | 395,000 | 352,500 | 369,500 | 305,200 | 424,200 | 471,000 | 488,200 | 344,100 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | 1.29 | 1.15 | 18.58 | 15.00 | 8.60 | 8.92 | 27.05 | — | 3.15 | 3.11 | 2.64 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,734,300K ÷ ($412,300K – $729,300K)
= —
Working capital turnover is a financial ratio that measures a company's ability to efficiently utilize its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital.
Analyzing the working capital turnover of Churchill Downs Incorporated based on the provided data, we observe fluctuations in the ratio over time.
- In March 2020, the working capital turnover was 2.64, indicating that for each dollar of working capital, the company generated $2.64 in sales.
- The ratio improved to 3.15 by September 2020, suggesting an increase in efficiency in utilizing working capital to generate revenue.
- However, there was a significant spike in March 2021, with a working capital turnover of 27.05, which could be an anomaly or attributed to specific events during that period.
- The ratio returned to more normalized levels in subsequent quarters, hovering around 8 to 18, indicating a consistent but varying level of efficiency in working capital management.
- Interestingly, there are instances where the working capital turnover is not provided (denoted as "—"), which could be due to data unavailability or specific circumstances affecting the calculation.
Overall, the trend in Churchill Downs Incorporated's working capital turnover shows variability, with some periods of significant fluctuations. Further analysis of the company's operational and financial activities would be needed to understand the reasons behind these fluctuations and assess the effectiveness of its working capital management strategies.