Churchill Downs Incorporated (CHDN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 417,300 | 439,400 | 249,100 | -81,900 | 137,500 |
| Total assets | US$ in thousands | 6,955,500 | 6,206,800 | 2,981,600 | 2,981,600 | 2,551,000 |
| ROA | 6.00% | 7.08% | 8.35% | -2.75% | 5.39% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $417,300K ÷ $6,955,500K
= 6.00%
Churchill Downs, Inc.'s return on assets (ROA) has fluctuated over the past five years, indicating varying levels of efficiency in generating profits from its assets. The ROA stood at 6.00% in 2023, down from 7.08% in 2022, and further lower compared to 8.35% in 2021. The negative ROA of -3.05% in 2020 reflects a period where the company was not effectively utilizing its assets to generate profits. However, there was a recovery in 2019 with an ROA of 5.39%.
Overall, Churchill Downs, Inc. experienced a recent decline in ROA, suggesting a potential decrease in profitability relative to its asset base. This trend should be closely monitored to assess the company's operational efficiency and effectiveness in utilizing its assets to generate returns.