Churchill Downs Incorporated (CHDN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 144,500 | 129,800 | 291,300 | 67,400 | 96,200 |
| Short-term investments | US$ in thousands | — | — | — | 630,000 | — |
| Total current liabilities | US$ in thousands | 755,800 | 621,600 | 395,000 | 424,200 | 301,200 |
| Cash ratio | 0.19 | 0.21 | 0.74 | 1.64 | 0.32 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,500K
+ $—K)
÷ $755,800K
= 0.19
The cash ratio of Churchill Downs, Inc. has fluctuated over the past five years. In 2023, the cash ratio stands at 0.27, indicating that the company has $0.27 in cash and cash equivalents for every $1 of current liabilities. This ratio has decreased slightly compared to the previous year, when it was 0.28.
In 2021, the cash ratio experienced a significant increase to 0.83, reflecting a strong liquidity position with $0.83 in cash and cash equivalents for every $1 of current liabilities. However, this level was not sustained in the following years as the ratio dropped to 0.23 in 2020 and then to 0.41 in 2019.
Overall, the trend in the cash ratio suggests that Churchill Downs, Inc. has had varying levels of liquidity over the years, with a notable improvement in 2021. It is important to monitor this ratio closely to assess the company's ability to meet its short-term obligations with its available cash resources.