Churchill Downs Incorporated (CHDN)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 425,800 | 411,700 | 408,300 | 342,000 | 417,300 | 360,700 | 356,700 | 553,000 | 439,400 | 481,700 | 486,100 | 255,100 | 249,100 | 222,900 | 204,700 | -22,400 | -81,900 | -95,000 | -123,400 | 102,500 |
| Total stockholders’ equity | US$ in thousands | 1,083,600 | 1,097,000 | 1,030,900 | 826,900 | 893,600 | 888,700 | 853,800 | 704,200 | 551,500 | 612,700 | 602,900 | 317,800 | 306,800 | 338,800 | 317,400 | 202,200 | 367,100 | 372,200 | 320,100 | 433,000 |
| ROE | 39.29% | 37.53% | 39.61% | 41.36% | 46.70% | 40.59% | 41.78% | 78.53% | 79.67% | 78.62% | 80.63% | 80.27% | 81.19% | 65.79% | 64.49% | -11.08% | -22.31% | -25.52% | -38.55% | 23.67% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $425,800K ÷ $1,083,600K
= 39.29%
The return on equity (ROE) for Churchill Downs Incorporated has shown significant fluctuations over the past few years.
From March 31, 2020, through December 31, 2021, the ROE figures were negative and ranged from -38.55% to 81.19%. This indicates that during this period, the company's net income did not generate considerable returns for shareholders relative to the equity invested.
However, starting from March 31, 2022, the ROE showed a positive trend, consistently staying above 78% until December 31, 2024. This improvement suggests that the company's profitability and efficiency in utilizing shareholder equity have strengthened over these later periods.
The sudden increase in ROE from June 30, 2021, to December 31, 2021, followed by a steady high level until the end of 2024, indicates that Churchill Downs Incorporated experienced a significant boost in profitability and efficiency in generating returns for shareholders during this time frame.
Overall, the positive trends in ROE from 2022 onwards reflect improved performance in utilizing equity to generate profits for the company and its shareholders.