Churchill Downs Incorporated (CHDN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 400,800 | 370,600 | 583,200 | 377,500 | 344,500 | 1,806,300 | 2,004,900 | 520,300 | 501,500 | 528,100 | 532,600 | 346,800 | 235,100 | 806,600 | 817,700 | 843,000 | 221,200 | 301,900 | 348,500 | 259,400 |
| 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 |
| Current ratio | 0.53 | 0.55 | 0.90 | 0.54 | 0.55 | 3.67 | 3.79 | 1.20 | 1.27 | 1.50 | 1.44 | 1.14 | 0.55 | 1.71 | 1.67 | 2.45 | 0.73 | 1.09 | 1.13 | 0.87 |
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 shown fluctuation over the quarters. In Q4 of 2023, the current ratio decreased to 0.53, signaling that the company may have difficulty meeting its short-term obligations with its current assets. This was a decrease from the previous quarter's ratio of 0.55 and was much lower compared to the same quarter in 2022.
The current ratio in Q3 of 2023 was 0.55, slightly higher than Q4 2023 but still at a level indicating potential liquidity challenges. The company saw a brief improvement in liquidity in Q2 of 2023 with a current ratio of 0.90, showing an increase in its ability to cover short-term liabilities with current assets. However, this improvement was short-lived as the ratio decreased again in Q1 of 2023 to 0.54.
Comparing these recent ratios to the same periods in 2022, it is evident that Churchill Downs, Inc. had significantly higher liquidity levels last year. The company experienced a sharp decline in liquidity from Q2 2022 through Q1 2023 before a slight uptick in Q2 2023.
Overall, the current ratio trend for Churchill Downs, Inc. in the recent quarters indicates a potential liquidity challenge, and investors and stakeholders may need to closely monitor the company's ability to manage its short-term obligations effectively.