Churchill Downs Incorporated (CHDN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.69 | 0.73 | 0.66 | 0.54 | 0.58 |
| Debt-to-capital ratio | 0.84 | 0.89 | 0.86 | 0.82 | 0.74 |
| Debt-to-equity ratio | 5.34 | 8.27 | 6.39 | 4.41 | 2.89 |
| Financial leverage ratio | 7.78 | 11.25 | 9.72 | 8.12 | 5.02 |
Churchill Downs, Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The trends in the ratios over the past five years show fluctuations in the company's solvency position.
The debt-to-assets ratio has fluctuated, with a slight increase in 2023 compared to 2022. This ratio suggests that 70% of the company's assets are financed by debt in 2023, which is slightly higher than the previous year.
The debt-to-capital ratio has also shown variability over the years, with an increase in 2023 compared to 2022. In 2023, 84% of the company's capital is financed by debt, which indicates a higher reliance on debt compared to the previous year.
The debt-to-equity ratio has shown fluctuations over the years, with a significant decrease in 2023 compared to 2022. In 2023, the ratio stands at 5.41, which suggests that the company's long-term obligations are predominantly financed by equity, although it has increased compared to previous years.
The financial leverage ratio has also demonstrated variability, with an increase in 2023 compared to 2022. The ratio of 7.78 in 2023 indicates that the company is highly leveraged and has a higher proportion of debt relative to equity.
Overall, Churchill Downs, Inc.'s solvency ratios show a mix of trends, indicating changes in the company's capital structure and the level of financial risk. Investors and creditors may closely monitor these ratios to assess the company's ability to meet its long-term obligations and manage its financial leverage effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.09 | 5.13 | 5.06 | -0.09 | 3.74 |
- Churchill Downs, Inc.'s interest coverage ratio has been fluctuating over the past five years, ranging from a low of 1.33 in 2020 to a high of 5.32 in 2021.
- The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.
- A higher interest coverage ratio is generally seen as a positive indicator of the company's financial health, as it shows that the company is generating enough operating income to cover its interest expenses comfortably.
- In 2023, the interest coverage ratio decreased to 2.76 from 3.77 in 2022, which could indicate a slight decline in the company's ability to cover its interest expenses with operating income.
- Further analysis of the underlying reasons for this decline and comparison to industry benchmarks would be necessary to assess the potential impact on Churchill Downs, Inc.'s financial stability and performance.