Churchill Downs Incorporated (CHDN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,765,800 | 1,476,000 | 1,324,500 | 828,800 | 1,103,000 |
| Revenue | US$ in thousands | 2,193,300 | 1,809,800 | 1,597,200 | 1,054,000 | 1,329,700 |
| Gross profit margin | 80.51% | 81.56% | 82.93% | 78.63% | 82.95% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,765,800K ÷ $2,193,300K
= 80.51%
The gross profit margin of Churchill Downs, Inc. has shown a fluctuating trend over the past five years. In 2019, the gross profit margin was at 25.80%, which increased to 27.93% in 2021 before experiencing a significant jump to 31.30% in 2022. In the most recent period ending December 31, 2023, the gross profit margin further improved to 32.32%.
This upward trend in the gross profit margin indicates that Churchill Downs, Inc. has been more effective in managing its production costs relative to its sales revenue over the years. The company's ability to maintain and increase its gross profit margin reflects positively on its operational efficiency and profitability. It suggests that Churchill Downs, Inc. may have implemented strategies to enhance cost control, pricing power, or product mix to improve margins and overall financial performance.