Churchill Downs Incorporated (CHDN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.32% | 32.32% | 31.30% | 27.93% | 18.36% |
| Operating profit margin | 25.93% | 22.91% | 31.05% | 28.27% | 10.10% |
| Pretax margin | 20.96% | 22.82% | 33.64% | 21.51% | 0.76% |
| Net profit margin | 15.61% | 16.95% | 24.28% | 15.60% | 1.26% |
Churchill Downs Incorporated has shown a positive trend in its profitability ratios over the past five years. The Gross Profit Margin has steadily increased from 18.36% in December 2020 to 34.32% in December 2024, indicating the company's ability to efficiently generate revenue after accounting for the cost of goods sold.
Similarly, the Operating Profit Margin has shown significant improvement, rising from 10.10% in December 2020 to 25.93% in December 2024. This suggests that the company's operating efficiency has improved over the years, leading to higher profitability from its core business operations.
The Pretax Margin has fluctuated but generally trended upwards, reaching 33.64% in December 2022 before settling at 20.96% in December 2024. This indicates that the company has been able to manage its operational and non-operational expenses effectively, resulting in higher earnings before taxes.
Lastly, the Net Profit Margin, which represents the bottom line profitability after all expenses have been deducted, has remained relatively stable, ranging from 15.60% in December 2021 to 15.61% in December 2024. This consistency suggests that Churchill Downs Incorporated has been able to maintain a healthy level of net income relative to its total revenue over the years.
Overall, the improving trend in profitability margins reflects Churchill Downs Incorporated's ability to generate profits efficiently and manage its costs effectively, which bodes well for its financial performance and overall business sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.74% | 8.11% | 9.05% | 15.14% | 3.96% |
| Return on assets (ROA) | 5.87% | 6.00% | 7.08% | 8.35% | 0.50% |
| Return on total capital | 79.64% | 92.91% | 137.10% | 139.60% | 23.97% |
| Return on equity (ROE) | 39.39% | 46.70% | 79.67% | 81.19% | 3.62% |
Churchill Downs Incorporated's profitability ratios demonstrate fluctuations over the period from 2020 to 2024.
- Operating Return on Assets (Operating ROA):
- The Operating ROA improved significantly from 2020 (3.96%) to 2021 (15.14%), indicating efficient utilization of assets to generate operating profits. However, there was a subsequent decrease in 2022 (9.05%), followed by a further decline in 2023 (8.11%), before recovering slightly in 2024 (9.74%). This suggests volatility in the company's operational efficiency in recent years.
- Return on Assets (ROA):
- The ROA also saw a notable increase from 2020 (0.50%) to 2021 (8.35%), indicating improved overall profitability relative to its assets. However, there was a gradual decline in ROA over the following years, with figures dropping to 7.08% in 2022, 6.00% in 2023, and 5.87% in 2024. This trend suggests a reduction in the company's ability to generate profits from its total assets.
- Return on Total Capital:
- The Return on Total Capital was exceptionally high in 2021 (139.60%) and 2022 (137.10%), indicating strong returns relative to the total capital invested in the business. However, this ratio declined in the subsequent years to 92.91% in 2023 and 79.64% in 2024. While still relatively healthy, the decreasing trend implies a potential decrease in the efficiency of capital utilization.
- Return on Equity (ROE):
- The ROE experienced a significant surge from 2020 (3.62%) to 2021 (81.19%), suggesting a substantial increase in profitability in relation to shareholders' equity. The ratio remained relatively high in 2022 (79.67%) but then decreased notably in 2023 (46.70%) and 2024 (39.39%). This indicates a declining trend in the company's ability to generate profits for its shareholders.
In conclusion, Churchill Downs Incorporated's profitability ratios show a mix of positive and negative trends, highlighting fluctuations in operational efficiency, overall profitability, capital utilization, and returns to shareholders over the analyzed period. Continual monitoring and analysis of these ratios will be crucial for assessing the company's financial performance and making informed decisions.