Churchill Downs Incorporated (CHDN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 830,200 | 756,100 | 428,300 | -7,200 | 265,200 |
| Long-term debt | US$ in thousands | 4,768,300 | 4,558,700 | 1,961,000 | 1,618,300 | 1,469,900 |
| Total stockholders’ equity | US$ in thousands | 893,600 | 551,500 | 306,800 | 367,100 | 508,300 |
| Return on total capital | 14.66% | 14.80% | 18.89% | -0.36% | 13.41% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $830,200K ÷ ($4,768,300K + $893,600K)
= 14.66%
Churchill Downs, Inc.'s return on total capital has fluctuated over the past five years, ranging from a low of 5.35% in 2020 to a high of 19.82% in 2021. The return on total capital was 12.91% in 2023, indicating the company's ability to generate profits from both its debt and equity capital. The trend suggests that the company's efficiency in utilizing its total capital improved significantly in 2021 compared to 2020, but then slightly decreased in 2022 before improving again in 2023. Overall, the company's return on total capital has shown some variability, and further analysis would be needed to determine the underlying factors contributing to these fluctuations.