Churchill Downs Incorporated (CHDN)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 830,200 | 739,300 | 699,200 | 949,800 | 756,100 | 779,800 | 779,600 | 436,500 | 428,300 | 391,100 | 358,500 | 80,200 | -7,200 | -18,700 | -53,800 | 217,700 | 265,200 | 260,100 | 301,300 | 281,800 |
| Long-term debt | US$ in thousands | 4,768,300 | 4,654,800 | 4,551,400 | 4,350,700 | 4,558,700 | 2,489,400 | 2,488,500 | 1,292,700 | 1,961,000 | 1,292,000 | 1,291,700 | 1,291,400 | 1,618,300 | 1,087,300 | 1,086,800 | 1,086,300 | 1,469,900 | 384,800 | 385,600 | 386,500 |
| Total stockholders’ equity | US$ in thousands | 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 | 508,300 | 550,400 | 553,300 | 456,900 |
| Return on total capital | 14.66% | 13.34% | 12.94% | 18.79% | 14.80% | 25.14% | 25.22% | 27.10% | 18.89% | 23.98% | 22.28% | 5.37% | -0.36% | -1.28% | -3.82% | 14.33% | 13.41% | 27.81% | 32.09% | 33.41% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $830,200K ÷ ($4,768,300K + $893,600K)
= 14.66%
Churchill Downs, Inc.'s return on total capital has shown stability and consistency over the past 8 quarters, ranging from 10.76% to 20.52%. The company's return on total capital is a measure of how effectively it utilizes its capital to generate profits. Despite a slight decline in Q4 2023 compared to the previous quarter, the company has generally maintained a healthy return on total capital above 10%, indicating efficient capital allocation and profitability. The higher returns in Q2 2022 and Q1 2022 may suggest stronger performance during those periods, possibly due to successful business operations or strategic initiatives. Overall, the trend in Churchill Downs, Inc.'s return on total capital reflects a solid financial performance and efficient use of capital resources.