Churchill Downs Incorporated (CHDN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,768,300 | 4,558,700 | 1,961,000 | 1,618,300 | 1,469,900 |
| Total assets | US$ in thousands | 6,955,500 | 6,206,800 | 2,981,600 | 2,981,600 | 2,551,000 |
| Debt-to-assets ratio | 0.69 | 0.73 | 0.66 | 0.54 | 0.58 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,768,300K ÷ $6,955,500K
= 0.69
The debt-to-assets ratio of Churchill Downs, Inc. has shown fluctuations over the past five years. The ratio increased from 0.58 in 2019 to 0.70 in 2023, indicating that the company's reliance on debt to finance its operations and investments relative to its total assets has risen. This increase suggests that a larger portion of the company's assets are being funded by debt.
In 2020 and 2021, the debt-to-assets ratio continued to climb, reaching its peak at 0.74 in 2022, before slightly declining to 0.70 in 2023. These fluctuations may indicate varying levels of debt management and financial leverage strategies implemented by Churchill Downs, Inc. during these years.
The increasing trend in the debt-to-assets ratio from 2019 to 2022 could suggest either a deliberate strategy to leverage debt for growth opportunities or challenges in generating sufficient internal funds to support investments. On the other hand, the slight decrease in the ratio in 2023 may indicate a moderation in the company's debt utilization or improved asset management efficiency.
Overall, the trend in Churchill Downs, Inc.'s debt-to-assets ratio reflects a varying mix of debt and assets in the company's capital structure, highlighting the importance of closely monitoring debt levels and financial leverage for sustainable growth and financial stability.