Churchill Downs Incorporated (CHDN)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 6,955,500 | 6,750,500 | 6,578,600 | 6,273,500 | 6,206,800 | 4,674,100 | 4,619,600 | 3,036,900 | 2,981,600 | 2,973,500 | 2,970,600 | 2,787,100 | 2,981,600 | 3,263,000 | 3,216,000 | 3,203,800 | 2,551,000 | 2,562,500 | 2,588,500 | 2,478,500 |
| Debt-to-assets ratio | 0.69 | 0.69 | 0.69 | 0.69 | 0.73 | 0.53 | 0.54 | 0.43 | 0.66 | 0.43 | 0.43 | 0.46 | 0.54 | 0.33 | 0.34 | 0.34 | 0.58 | 0.15 | 0.15 | 0.16 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,768,300K ÷ $6,955,500K
= 0.69
The trend analysis of Churchill Downs, Inc.'s debt-to-assets ratio over the past eight quarters reveals consistency in the company's leverage position, with the ratio remaining stable at around 0.70 for the most recent four quarters. This indicates that the company has been maintaining a debt level of 70% of its total assets, suggesting a moderate level of financial risk and that a significant portion of its assets is financed through debt.
Comparing to the previous year, there was a slight increase in the ratio in Q4 2022 to 0.74 from 0.68 in Q3 2022, but it has since stabilized in the 0.70 range. The decrease from 0.74 in Q4 2022 to 0.70 in Q1 2022 may indicate some efforts by the company to reduce its debt levels or optimize its asset base.
Overall, Churchill Downs, Inc. seems to have a consistent approach to its capital structure, maintaining a relatively stable debt-to-assets ratio. Investors and stakeholders may view this stability positively, as it suggests a balanced approach to financing the company's operations and growth initiatives. However, ongoing monitoring of this ratio is recommended to ensure continued stability and sustainability in the company's financial position.