Churchill Downs Incorporated (CHDN)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 7,275,900 | 6,955,500 | 6,206,800 | 2,981,600 | 2,686,400 |
| Operating ROA | 9.74% | 8.11% | 9.05% | 15.14% | 3.96% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $709,000K ÷ $7,275,900K
= 9.74%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how effectively a company is generating operating profits from its assets. For Churchill Downs Incorporated, the Operating ROA has shown fluctuations over the past five years.
In December 31, 2020, Churchill Downs had an Operating ROA of 3.96%, which increased significantly to 15.14% by December 31, 2021, signifying a substantial improvement in operational efficiency and profitability. However, in the following years, the Operating ROA slightly declined to 9.05% by December 31, 2022, and further to 8.11% by December 31, 2023.
Fortunately, the company rebounded in terms of its Operating ROA to 9.74% by December 31, 2024, showing a recovery in its ability to generate operating profits relative to its assets. Overall, while there have been fluctuations in Churchill Downs' Operating ROA over the years, it is essential for the company to strive for consistent improvements in this ratio to enhance its operational efficiency and profitability.