Churchill Downs Incorporated (CHDN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 573,200 | 561,800 | 608,800 | 343,600 | 8,000 |
| Revenue | US$ in thousands | 2,734,300 | 2,461,700 | 1,809,800 | 1,597,200 | 1,054,000 |
| Pretax margin | 20.96% | 22.82% | 33.64% | 21.51% | 0.76% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $573,200K ÷ $2,734,300K
= 20.96%
Based on the provided data, Churchill Downs Incorporated's pretax margin has shown significant fluctuations over the five-year period from 2020 to 2024.
In 2020, the pretax margin was a mere 0.76%, indicating that the company's profitability before taxes was very low. However, there was a remarkable improvement in 2021, with the pretax margin surging to 21.51%, suggesting a substantial increase in profitability.
The following year, in 2022, there was a further substantial increase in the pretax margin to 33.64%, indicating that the company became more profitable. However, in 2023, there was a slight decline in the pretax margin to 22.82%, although it remained relatively high compared to the base year.
Finally, in 2024, the pretax margin decreased to 20.96%, showing a slight dip in profitability compared to the previous year. Despite this slight decrease, the company's profitability remained relatively strong compared to the initial years of the period under review.
Overall, Churchill Downs Incorporated's pretax margin demonstrated significant volatility, with notable improvements in profitability in certain years and slight decreases in others. This trend suggests that the company's performance in generating profits before taxes fluctuated over the five-year period.