Churchill Downs Incorporated (CHDN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 96,200 | 189,800 | 202,700 | 119,700 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 655,000 | 644,000 | 633,000 | 630,000 | 634,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 119,500 | 108,100 | 79,500 | 74,000 | 95,500 | 69,400 | 65,400 | 105,800 | 108,300 | 105,300 | 89,500 | 114,700 | 85,900 | 93,700 | 84,300 | 61,700 | 51,800 | 36,800 | 72,800 | 64,200 |
| 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 |
| Quick ratio | 0.35 | 0.36 | 0.70 | 0.36 | 0.36 | 0.37 | 0.71 | 0.93 | 1.01 | 3.05 | 2.91 | 2.93 | 1.85 | 2.87 | 1.50 | 2.22 | 0.49 | 0.82 | 0.89 | 0.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($144,500K
+ $—K
+ $119,500K)
÷ $755,800K
= 0.35
The quick ratio of Churchill Downs, Inc. has fluctuated over the past eight quarters, ranging from a low of 0.43 to a high of 1.05. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets.
In Q2 2022, the quick ratio was at its highest at 1.05, suggesting that the company had a sufficient level of liquid assets to cover its current liabilities. However, in the subsequent quarters, the quick ratio decreased, indicating a potential decrease in the company's liquidity position.
Notably, the quick ratio significantly declined in Q4 2023 to 0.43, the lowest observed in the period analyzed. This may raise concerns about the company's ability to meet its short-term obligations using its quick assets. It would be essential for stakeholders to monitor Churchill Downs, Inc.'s liquidity position closely to ensure the company can meet its financial obligations in the short term.