Churchill Downs Incorporated (CHDN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 175,500 | 152,700 | 230,900 | 222,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 655,000 | 644,000 | 633,000 | 630,000 | 634,000 | — | — |
| 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 |
| Cash ratio | 0.24 | 0.22 | 0.30 | 0.27 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($175,500K
+ $—K)
÷ $729,300K
= 0.24
The cash ratio of Churchill Downs Incorporated has shown fluctuations over the years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a company has more liquid assets available to cover its short-term obligations.
From March 31, 2020, to September 30, 2021, the cash ratio for Churchill Downs remained relatively high, ranging from 1.33 to 2.75. This indicates the company had a strong ability to cover its short-term liabilities with cash during this period.
However, starting from December 31, 2021, the cash ratio began to decline significantly, dropping to as low as 0.21 by December 31, 2022. This suggests a reduction in the company's cash reserves relative to its short-term obligations during this period.
For the most recent data available as of December 31, 2024, the cash ratio increased to 0.24 but still remains relatively low compared to the earlier periods. This indicates that Churchill Downs may have faced challenges in maintaining a high level of liquidity to cover its short-term liabilities in recent years.
In conclusion, the trend in the cash ratio of Churchill Downs Inc. shows a fluctuating pattern, with periods of strong liquidity followed by declines in cash reserves. Investors and stakeholders may need to monitor the company's cash management and liquidity position closely to assess its ability to meet short-term obligations in the future.