Churchill Downs Incorporated (CHDN)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($175,500K
+ $—K
+ $—K)
÷ $729,300K
= 0.24
The quick ratio of Churchill Downs Incorporated, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio started at a healthy level of 2.04 on March 31, 2020, indicating that the company had more than enough liquid assets to cover its current liabilities.
However, the quick ratio experienced a decline by June 30, 2020, dropping to 1.33, which may have raised concerns about the company's liquidity position. The ratio improved in the following quarters, reaching its peak at 2.75 on September 30, 2021, reflecting a strong ability to fulfill short-term obligations.
Subsequently, the quick ratio exhibited a significant decline, falling to 0.21 by December 31, 2022. This sharp decrease may signal potential liquidity issues for Churchill Downs Incorporated, as the company may struggle to meet its immediate financial obligations using its quick assets alone.
Although the quick ratio slightly recovered in the following quarters, it remained relatively low, hovering around 0.20 to 0.30 from March 31, 2023, to December 31, 2024. The downward trend in the quick ratio suggests a potential liquidity challenge for the company, emphasizing the importance of closely monitoring Churchill Downs Incorporated's ability to cover its short-term liabilities with its liquid assets in the future.