Churchill Downs Incorporated (CHDN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 561,800 | 608,800 | 343,600 | -87,200 | 194,300 |
| Revenue | US$ in thousands | 2,193,300 | 1,809,800 | 1,597,200 | 1,054,000 | 1,329,700 |
| Pretax margin | 25.61% | 33.64% | 21.51% | -8.27% | 14.61% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $561,800K ÷ $2,193,300K
= 25.61%
Churchill Downs, Inc.'s pretax margin has shown volatility over the past five years, ranging from a low of 0.76% in 2020 to a high of 33.64% in 2022. The pretax margin for the latest year, 2023, stands at 22.82%, indicating a decrease from the previous year but still reflecting a strong profitability before taxes. This metric reveals the company's ability to generate earnings relative to its revenue, with fluctuations over the years possibly attributable to various factors such as operating efficiency, cost management, and revenue streams. Further analysis of the company's financial performance and operating strategies would be necessary to understand the drivers behind these fluctuations in pretax margin.