Churchill Downs Incorporated (CHDN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 893,600 | 551,500 | 306,800 | 367,100 | 508,300 |
| Debt-to-equity ratio | 5.34 | 8.27 | 6.39 | 4.41 | 2.89 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,768,300K ÷ $893,600K
= 5.34
The debt-to-equity ratio of Churchill Downs, Inc. has shown fluctuations over the past five years. In 2023, the ratio stands at 5.41, indicating that the company relies more on debt financing than equity to fund its operations and growth. This represents a decrease from the previous year, where the ratio was 8.35, suggesting a decrease in the level of debt relative to equity in the capital structure.
Looking back at the trend over the five-year period, the company's debt-to-equity ratio has generally been on an upward trajectory, with the highest point recorded in 2022 at 8.35. This indicates that in recent years, Churchill Downs, Inc. has been increasingly using debt to finance its activities compared to equity.
Although the ratio has decreased in 2023 compared to 2022, it remains higher than the levels observed in 2020 and 2019. This suggests that the company still carries a significant amount of debt relative to equity on its balance sheet.
Overall, the trend in Churchill Downs, Inc.'s debt-to-equity ratio indicates a notable reliance on debt financing to support its operations and growth initiatives, potentially signaling increased leverage and financial risk. It would be prudent for stakeholders to closely monitor the company's debt management strategies and overall financial health.