Churchill Downs Incorporated (CHDN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,955,500 | 6,206,800 | 2,981,600 | 2,981,600 | 2,551,000 |
| Total stockholders’ equity | US$ in thousands | 893,600 | 551,500 | 306,800 | 367,100 | 508,300 |
| Financial leverage ratio | 7.78 | 11.25 | 9.72 | 8.12 | 5.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,955,500K ÷ $893,600K
= 7.78
The financial leverage ratio for Churchill Downs, Inc. has fluctuated over the past five years. The ratio indicates the extent to which the company relies on debt financing in relation to its equity.
In 2023, the financial leverage ratio stands at 7.78, reflecting a decrease from the previous year. This suggests that the company's reliance on debt has decreased in comparison to equity. In the prior year, the ratio was higher at 11.25, indicating a higher proportion of debt used for financing.
Looking further back, the ratio was 9.72 in 2021, showing a decrease from the preceding year but remained at a relatively high level. In 2020, there was a significant decrease to 7.32, indicating a reduction in reliance on debt. The lowest ratio in the past five years was in 2019 at 5.02, suggesting a lower level of debt compared to equity.
Overall, the trend in Churchill Downs, Inc.'s financial leverage ratio indicates fluctuations in the company's debt-to-equity structure over the years, with varying levels of reliance on debt for financing its operations.