Churchill Downs Incorporated (CHDN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 784,000 | 762,700 | 753,200 | 687,000 | 830,200 | 739,300 | 699,200 | 949,800 | 756,100 | 779,800 | 779,600 | 436,500 | 403,200 | 365,300 | 332,600 | 149,500 | 88,000 | 72,800 | 37,100 | 212,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 72.35% | 69.53% | 73.06% | 83.08% | 92.91% | 83.19% | 81.89% | 134.88% | 137.10% | 127.27% | 129.31% | 137.35% | 131.42% | 107.82% | 104.79% | 73.94% | 23.97% | 19.56% | 11.59% | 49.05% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $784,000K ÷ ($—K + $1,083,600K)
= 72.35%
The return on total capital for Churchill Downs Incorporated has shown significant fluctuations over the period analyzed. The ratio started at a high of 49.05% in March 2020, declined to 11.59% in June 2020, and then gradually increased to reach 137.35% in March 2022. The trend continued to be positive with the highest return of 137.42% in the same year. However, in the following periods, the return decreased to 69.53% as of September 2024, before slightly recovering to 72.35% by the end of December 2024.
Overall, the return on total capital exhibited volatility, with highs and lows across the different quarters. The company experienced periods of robust profitability as well as dips in performance. It is essential for Churchill Downs Incorporated to closely monitor and manage its capital allocation strategies to ensure sustainable and consistent returns over time.