Churchill Downs Incorporated (CHDN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 400,800 | 344,500 | 501,500 | 235,100 | 221,200 |
| Total current liabilities | US$ in thousands | 755,800 | 621,600 | 395,000 | 424,200 | 301,200 |
| Current ratio | 0.53 | 0.55 | 1.27 | 0.55 | 0.73 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $400,800K ÷ $755,800K
= 0.53
The current ratio of Churchill Downs, Inc. has been fluctuating over the past five years, ranging from 0.53 to 1.27. A current ratio below 1 indicates that the company may have challenges meeting its short-term obligations with its current assets alone.
The significant drop in the current ratio from 2019 to 2020 and the subsequent increase in 2021 may suggest fluctuations in the company's liquidity position. It is important to note that a current ratio of 1.27 in 2021 indicates that the company had more than enough current assets to cover its short-term liabilities.
However, the current ratio dropped again in 2023 to 0.53, which is the lowest level in the given timeframe. This decline could raise concerns about Churchill Downs, Inc.'s ability to meet its short-term obligations using its current assets effectively.
Overall, the trend in Churchill Downs, Inc.'s current ratio indicates some volatility and potential liquidity challenges over the past five years, requiring further investigation and analysis to understand the factors driving these fluctuations.