Churchill Downs Incorporated (CHDN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 175,500 | 144,500 | 129,800 | 291,300 | 67,400 |
| Short-term investments | US$ in thousands | — | — | — | — | 630,000 |
| Total current liabilities | US$ in thousands | 89,900 | 755,800 | 621,600 | 395,000 | 424,200 |
| Cash ratio | 1.95 | 0.19 | 0.21 | 0.74 | 1.64 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($175,500K
+ $—K)
÷ $89,900K
= 1.95
The cash ratio of Churchill Downs Incorporated has fluctuated over the years based on the provided data. The ratio stood at 1.64 on December 31, 2020, indicating the company had $1.64 in cash and cash equivalents for every $1 of current liabilities. However, the ratio decreased to 0.74 by December 31, 2021, suggesting a lower level of liquidity compared to the previous year.
Further declines were observed in the subsequent years, with the cash ratio dropping to 0.21 on December 31, 2022, and further decreasing to 0.19 by December 31, 2023. These decreasing trends may raise concerns about the company's ability to cover its short-term liabilities solely using its available cash and cash equivalents.
However, there was a significant improvement in the cash ratio by December 31, 2024, where it spiked to 1.95. This increase implies a stronger liquidity position for Churchill Downs Incorporated at the end of 2024, with more than enough cash on hand to cover its short-term obligations.
Overall, the fluctuating cash ratio of Churchill Downs Incorporated highlights the importance of closely monitoring liquidity levels to ensure the company can meet its short-term financial obligations effectively.