Churchill Downs Incorporated (CHDN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,083,600 | 893,600 | 551,500 | 306,800 | 367,100 |
| ROE | 39.39% | 46.70% | 79.67% | 81.19% | 3.62% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $426,800K ÷ $1,083,600K
= 39.39%
Churchill Downs Incorporated's return on equity (ROE) has shown significant fluctuations over the past five years. The ROE was at a low of 3.62% as of December 31, 2020, indicating lower profitability relative to shareholder equity. However, there was a substantial improvement in ROE to 81.19% as of December 31, 2021, which suggests a significant increase in profitability and efficiency in utilizing shareholder equity.
The trend continued positively in the following years, with ROE remaining above 70% for both December 31, 2022 and December 31, 2023, indicating sustained high profitability relative to equity. However, there was a notable decline in ROE to 39.39% as of December 31, 2024, which may suggest a decrease in profitability and efficiency in that particular year.
Overall, Churchill Downs Incorporated's ROE has shown a mix of high and low performance levels over the years, reflecting fluctuations in the company's ability to generate profits from the shareholders' investments. Further analysis of the company's financial performance and operational efficiency would be necessary to understand the factors driving these changes in ROE.