Churchill Downs Incorporated (CHDN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 426,800 | 417,300 | 439,400 | 249,100 | 13,300 |
| Total assets | US$ in thousands | 7,275,900 | 6,955,500 | 6,206,800 | 2,981,600 | 2,686,400 |
| ROA | 5.87% | 6.00% | 7.08% | 8.35% | 0.50% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $426,800K ÷ $7,275,900K
= 5.87%
The return on assets (ROA) for Churchill Downs Incorporated has shown a notable upward trend over the past few years. From a relatively low ROA of 0.50% as of December 31, 2020, the company's performance has significantly improved, reaching 8.35% as of December 31, 2021. This sharp increase in ROA indicates that Churchill Downs has been effectively utilizing its assets to generate profits.
Subsequently, although there was a slight decline in ROA to 7.08% as of December 31, 2022, and further to 6.00% as of December 31, 2023, the company's profitability remained relatively strong compared to the base year.
As of December 31, 2024, Churchill Downs' ROA stood at 5.87%, continuing its downward trend from the peak in 2021 but still above the initial rate in 2020. Overall, the company has demonstrated a consistent ability to generate returns relative to its asset base, indicating efficient management and effective utilization of resources.