Churchill Downs Incorporated (CHDN)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 144,500 | 129,900 | 374,000 | 173,900 | 129,800 | 110,600 | 310,200 | 294,500 | 291,300 | 315,700 | 342,200 | 147,700 | 67,400 | 622,000 | 649,200 | 700,900 | 96,200 | 189,800 | 202,700 | 119,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 655,000 | 644,000 | 633,000 | 630,000 | 634,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 301,200 | 275,800 | 308,800 | 297,700 |
| Cash ratio | 0.19 | 0.19 | 0.58 | 0.25 | 0.21 | 0.22 | 0.59 | 0.68 | 0.74 | 2.75 | 2.67 | 2.56 | 1.64 | 2.67 | 1.33 | 2.04 | 0.32 | 0.69 | 0.66 | 0.40 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($144,500K
+ $—K)
÷ $755,800K
= 0.19
Based on the data provided, Churchill Downs, Inc.'s cash ratio fluctuated over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
In Q1 2022, the cash ratio was relatively high at 0.81, indicating the company had a substantial amount of cash on hand compared to its short-term obligations. However, this ratio decreased in the following quarters, reaching its lowest point of 0.27 in Q4 2023.
The fluctuation in the cash ratio suggests varying levels of liquidity for Churchill Downs, Inc. While the company had a strong ability to meet its short-term liabilities in Q1 2022, there was a significant decline in liquidity by Q4 2023.
It is crucial for the company to closely monitor its cash position and ensure that it maintains an appropriate level of liquidity to meet its short-term obligations, as a low cash ratio may indicate potential liquidity challenges in the future.