Churchill Downs Incorporated (CHDN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 564,000 | 321,800 | 284,400 | 60,200 | 215,700 |
| Total assets | US$ in thousands | 6,955,500 | 6,206,800 | 2,981,600 | 2,981,600 | 2,551,000 |
| Operating ROA | 8.11% | 5.18% | 9.54% | 2.02% | 8.46% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $564,000K ÷ $6,955,500K
= 8.11%
Churchill Downs, Inc.'s operating return on assets (operating ROA) has fluctuated over the past five years as indicated by the data provided. In 2023, the operating ROA stood at 8.53%, showing an improvement from the previous year's 6.48%. This suggests that the company's ability to generate profits from its operating activities relative to its total assets has strengthened.
Comparing to 2021, where the operating ROA was at its peak of 10.32%, the current ratio indicates a slight decrease in efficiency. However, the 2023 figure still remains relatively strong compared to the 2020 and 2019 levels of 2.93% and 8.66%, respectively.
Overall, the trend in operating ROA for Churchill Downs, Inc. suggests some degree of variability but demonstrates a generally positive operational performance in recent years, with the company effectively utilizing its assets to generate operating income. Continued monitoring and analysis of this ratio would be beneficial to assess the company's ongoing financial health and operational efficiency.