Churchill Downs Incorporated (CHDN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 893,600 | 551,500 | 306,800 | 367,100 | 508,300 |
| ROE | 46.70% | 79.67% | 81.19% | -22.31% | 27.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $417,300K ÷ $893,600K
= 46.70%
The return on equity (ROE) of Churchill Downs, Inc. has fluctuated over the past five years. In 2023, the ROE was 46.70%, indicating a profitable utilization of shareholder equity. This was a decrease from the high ROE of 79.67% in 2022 and 81.19% in 2021, suggesting a decrease in profitability and efficiency in generating returns for shareholders compared to the previous years.
The negative ROE of -22.31% in 2020 is a concerning sign as it indicates that the company incurred losses that exceeded the shareholders' equity during that period. However, Churchill Downs, Inc. managed to improve its performance in 2023 compared to 2020.
Overall, the trend in ROE for Churchill Downs, Inc. shows considerable volatility, with sharp increases and decreases over the years. It may be beneficial for stakeholders to closely monitor the company's profitability and efficiency in utilizing shareholder equity to assess its financial performance and sustainability.