Churchill Downs Incorporated (CHDN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 412,300 | 400,800 | 344,500 | 501,500 | 235,100 |
| Total current liabilities | US$ in thousands | 89,900 | 755,800 | 621,600 | 395,000 | 424,200 |
| Current ratio | 4.59 | 0.53 | 0.55 | 1.27 | 0.55 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $412,300K ÷ $89,900K
= 4.59
Based on the provided data for Churchill Downs Incorporated's current ratio from 2020 to 2024, there are notable fluctuations in the company's short-term liquidity position.
- In 2020, the current ratio was 0.55, indicating that Churchill Downs had more short-term liabilities than current assets, potentially raising concerns about its ability to cover its immediate obligations.
- By the end of 2021, the current ratio improved significantly to 1.27, suggesting a healthier liquidity position with a better ability to meet its short-term liabilities using current assets.
- However, the ratio decreased to 0.55 as of December 31, 2022, returning to a level that may be considered inadequate for covering short-term obligations.
- The current ratio further declined to 0.53 by the end of 2023, reinforcing concerns about Churchill Downs' short-term liquidity and its ability to readily meet financial obligations.
- Notably, by December 31, 2024, the current ratio surged to 4.59, indicating a substantial improvement in the company's liquidity position, with current assets significantly surpassing current liabilities.
Overall, the fluctuation in Churchill Downs Incorporated's current ratio over the years suggests varying levels of short-term liquidity and the need for closer monitoring of its financial position to ensure efficient management of current assets and liabilities.