Churchill Downs Incorporated (CHDN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.51% | 81.56% | 82.93% | 78.63% | 82.95% |
| Operating profit margin | 25.71% | 17.78% | 17.81% | 5.71% | 16.22% |
| Pretax margin | 25.61% | 33.64% | 21.51% | -8.27% | 14.61% |
| Net profit margin | 19.03% | 24.28% | 15.60% | -7.77% | 10.34% |
Based on the profitability ratios of Churchill Downs, Inc. over the past five years, we can observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has shown a generally increasing trend over the years, indicating that the company has been able to improve its efficiency in generating revenue after accounting for the cost of goods sold.
- The highest gross profit margin was observed in 2023 at 32.32%, reflecting a positive trend in the company's ability to control direct costs.
2. Operating Profit Margin:
- The operating profit margin has also been on an upward trend, indicating that the company has been effectively managing its operating expenses relative to its revenue.
- The highest operating profit margin was recorded in 2023 at 24.11%, showing improved operational efficiency and profitability.
3. Pre-tax Margin:
- The pre-tax margin has shown fluctuations over the years, with a significant increase in 2022 followed by a decline in 2023. This suggests that the company's pre-tax profitability has varied due to changes in factors such as operating expenses, interest expenses, and non-operating income.
- The highest pre-tax margin was reported in 2022 at 33.64%, indicating a strong pre-tax profitability performance for the company in that year.
4. Net Profit Margin:
- The net profit margin has shown variations, with significant improvements in 2023 compared to previous years. However, it was negative in 2020, indicating a loss for that particular year.
- The highest net profit margin was observed in 2023 at 16.95%, signifying improved profitability at the net income level.
In summary, Churchill Downs, Inc. has displayed positive trends in its profitability ratios, particularly in gross profit margin, operating profit margin, and net profit margin in recent years, indicating improved efficiency in generating profits from its operations. However, fluctuations in the pre-tax margin highlight the impact of non-operating factors on the company's overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.11% | 5.18% | 9.54% | 2.02% | 8.46% |
| Return on assets (ROA) | 6.00% | 7.08% | 8.35% | -2.75% | 5.39% |
| Return on total capital | 14.66% | 14.80% | 18.89% | -0.36% | 13.41% |
| Return on equity (ROE) | 46.70% | 79.67% | 81.19% | -22.31% | 27.05% |
Churchill Downs, Inc.'s profitability ratios have shown variability over the past five years.
Operating return on assets (Operating ROA) has fluctuated, with a noticeable increase from 2019 to 2021, a dip in 2022, and a subsequent increase in 2023. This ratio indicates that the company is able to generate operating income from its assets, with a significant improvement in 2021 compared to 2019.
Return on assets (ROA) also exhibited fluctuations, with a negative figure in 2020, likely indicating difficulties in generating profits from its assets that year. Despite the inconsistency, there was an overall improvement from 2019 to 2021, showing the company's ability to generate profits from its total assets.
Return on total capital saw a substantial increase in 2021 compared to the previous years, highlighting the efficiency in generating returns from both equity and debt sources. This ratio indicates the overall profitability of the company's total invested capital.
Return on equity (ROE) demonstrated a sharp increase from 2019 to 2021, showcasing the company's ability to generate profits from shareholders' equity. The negative figure in 2020 could be a result of the company's challenges during that year, but the significant improvement in 2021 is noteworthy.
Overall, Churchill Downs, Inc.'s profitability ratios reflect some volatility but also show improvements in certain areas, particularly in 2021, indicating a varying but overall positive trend in the company's ability to generate profits relative to its assets, capital, and equity.