Churchill Downs Incorporated (CHDN)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 417,300 | 439,400 | 249,100 | -81,900 | 137,500 |
| Revenue | US$ in thousands | 2,193,300 | 1,809,800 | 1,597,200 | 1,054,000 | 1,329,700 |
| Net profit margin | 19.03% | 24.28% | 15.60% | -7.77% | 10.34% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $417,300K ÷ $2,193,300K
= 19.03%
The net profit margin of Churchill Downs, Inc. has shown fluctuating performance over the past five years. In 2023, the net profit margin stood at 16.95%, indicating that the company retained around $0.17 of each dollar of revenue as profit after accounting for all expenses. This represented a decrease from the previous year's margin of 24.28%.
The significant improvement in net profit margin in 2022 compared to 2021 suggests a more efficient cost management or revenue growth strategy during that period. The company experienced a negative net profit margin of -7.77% in 2020, reflecting a period of financial difficulty where expenses surpassed revenue, leading to a loss.
Overall, despite fluctuations, the positive net profit margins in recent years indicate that Churchill Downs, Inc. has been profitable and effective in generating earnings relative to its revenue in the past five years, though there have been periods of challenge.