Churchill Downs Incorporated (CHDN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 784,000 | 762,700 | 753,200 | 687,000 | 830,200 | 739,300 | 699,200 | 949,800 | 756,100 | 779,800 | 779,600 | 436,500 | 403,200 | 365,300 | 332,600 | 149,500 | 88,000 | 72,800 | 37,100 | 212,400 |
| Interest expense (ttm) | US$ in thousands | 289,800 | 287,600 | 282,400 | 274,100 | 268,400 | 252,500 | 220,800 | 190,700 | 147,300 | 114,200 | 99,700 | 86,600 | 84,700 | 83,800 | 81,800 | 80,100 | 80,000 | 78,200 | 77,400 | 76,500 |
| Interest coverage | 2.71 | 2.65 | 2.67 | 2.51 | 3.09 | 2.93 | 3.17 | 4.98 | 5.13 | 6.83 | 7.82 | 5.04 | 4.76 | 4.36 | 4.07 | 1.87 | 1.10 | 0.93 | 0.48 | 2.78 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $784,000K ÷ $289,800K
= 2.71
The interest coverage ratio for Churchill Downs Incorporated has shown fluctuations over the reporting periods provided. The interest coverage ratio is a measure of the company's ability to meet its interest payments on outstanding debt obligations. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
From March 2020 to September 2021, the interest coverage ratio ranged from 0.48 to 4.76, indicating some variability in the company's ability to cover its interest expenses. It is noteworthy that the ratio improved consistently from March 2021 to June 2022, reaching a peak of 7.82, suggesting a stronger ability to cover interest payments during this period.
However, from September 2022 to December 2024, the interest coverage ratio declined gradually, ranging from 2.65 to 3.09. A decreasing trend in the interest coverage ratio may raise concerns about the company's ability to cover its interest expenses effectively.
Overall, it is essential for stakeholders to monitor Churchill Downs Incorporated's interest coverage ratio closely to assess the company's financial health and its ability to fulfill its debt obligations. Variability in the interest coverage ratio over time can indicate changes in the company's financial performance and risk profile.