Churchill Downs Incorporated (CHDN)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 709,000 | 564,000 | 561,900 | 451,500 | 106,500 |
| Revenue | US$ in thousands | 2,734,300 | 2,461,700 | 1,809,800 | 1,597,200 | 1,054,000 |
| Operating profit margin | 25.93% | 22.91% | 31.05% | 28.27% | 10.10% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $709,000K ÷ $2,734,300K
= 25.93%
Churchill Downs Incorporated's operating profit margin has shown a positive trend over the past five years, starting at 10.10% as of December 31, 2020, and steadily increasing to 28.27% as of December 31, 2021, 31.05% as of December 31, 2022, 22.91% as of December 31, 2023, and finally reaching 25.93% as of December 31, 2024. This indicates improvements in the company's ability to generate profits from its core business operations relative to its sales revenue.
The peak operating profit margin in 2022 suggests strong operational efficiency and cost management by the company. However, the slight decrease in the operating profit margin in 2023 followed by a modest increase in 2024 may indicate some fluctuations in profitability, which could be a result of various factors such as changes in costs, pricing strategies, or economic conditions.
Overall, Churchill Downs Incorporated has demonstrated a generally favorable performance in terms of its operating profit margin, with variations over the years. It is important for the company to continue monitoring and managing its operating expenses effectively to sustain and potentially improve its profitability in the future.