Churchill Downs Incorporated (CHDN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 508,300 | 550,400 | 553,300 | 456,900 |
| Debt-to-equity ratio | 5.34 | 5.24 | 5.33 | 6.18 | 8.27 | 4.06 | 4.13 | 4.07 | 6.39 | 3.81 | 4.07 | 6.39 | 4.41 | 2.92 | 3.40 | 2.51 | 2.89 | 0.70 | 0.70 | 0.85 |
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 for Churchill Downs, Inc. has been fluctuating over the past eight quarters. In the most recent quarter (Q4 2023), the ratio stood at 5.41, which indicates that the company had $5.41 in debt for every $1 of equity. This ratio has been relatively high, suggesting that Churchill Downs relies significantly on debt financing to fund its operations and growth.
The trend in the debt-to-equity ratio shows variations over the quarters, with a peak at 8.35 in Q4 2022 and a low of 5.19 in Q3 2022. The company experienced a significant increase in leverage from Q1 2022 to Q4 2022. However, the ratio has shown some fluctuation in more recent quarters.
A high debt-to-equity ratio can indicate a higher financial risk for the company, as it implies a higher level of debt relative to equity. Investors and creditors may view a high ratio with caution, as it may suggest potential difficulties in meeting debt obligations in the future. Churchill Downs, Inc. should continue to monitor and manage its debt levels to ensure a healthy balance between debt and equity financing.