Choice Hotels International Inc (CHH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 24.63 | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | 5.59 | 4.37 |
The activity ratios of Choice Hotels International Inc provide insights into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory Turnover: The inventory turnover ratio for December 31, 2023, is 24.63, indicating that Choice Hotels efficiently sells its inventory over the year. However, data for other years is not available, making it difficult to assess the trend over time.
2. Receivables Turnover: There is no data available for receivables turnover for the years provided. This ratio is crucial for understanding how quickly the company collects its receivables from customers.
3. Payables Turnover: Similarly, data is not available for payables turnover for any of the years. This ratio is important as it shows how efficiently the company pays its suppliers.
4. Working Capital Turnover: The working capital turnover ratio was 4.37 on December 31, 2020, and increased to 5.59 on December 31, 2021. This indicates that the company is utilizing its working capital effectively to generate sales. Unfortunately, there is no data for the subsequent years to observe the trend.
In conclusion, while Choice Hotels International Inc seems to be efficiently managing its inventory and working capital based on the available data, the lack of information on receivables and payables turnover limits a comprehensive analysis of its overall activity ratios over time.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 14.82 | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Choice Hotels International Inc based on the provided data are as follows:
1. Days of Inventory on Hand (DOH):
- As of December 31, 2023, the company had 14.82 days of inventory on hand.
- No specific data is available for the other years.
2. Days of Sales Outstanding (DSO):
- There is no specific data available for any of the years provided, indicating that the company's average collection period for accounts receivable is not specified in the dataset.
3. Number of Days of Payables:
- Information regarding the number of days of payables is not provided for any of the years, suggesting that the average payment period for the company's outstanding bills is not disclosed in the dataset.
Overall, based on the limited information available, it is challenging to draw comprehensive conclusions about Choice Hotels International Inc's efficiency in managing its inventory, accounts receivable, and accounts payable. Further data or context would be needed to conduct a more in-depth analysis of the company's activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.28 | 2.60 | 2.31 |
| Total asset turnover | 0.63 | 0.64 | 0.67 | 0.55 | 0.49 |
Choice Hotels International Inc's long-term activity ratios show a positive trend over the years. The fixed asset turnover ratio has improved steadily from 2.31 in 2020 to 3.28 in 2022, indicating that the company is generating more revenue for each dollar of fixed assets invested. However, there is missing data for 2023 and 2024, which makes it challenging to assess the continuing trend.
Regarding total asset turnover, the ratio has also displayed growth, increasing from 0.49 in 2020 to 0.67 in 2022. This suggests that Choice Hotels International Inc has been more efficient in utilizing its total assets to generate revenue. Although there was a slight decline in 2023 and 2024 to 0.64 and 0.63, respectively, the company still maintains a relatively healthy level of asset turnover.
Overall, the company's long-term activity ratios reflect an improvement in asset utilization efficiency and revenue generation, which is a positive indicator of operational performance and potential growth prospects. It would be essential for investors and stakeholders to monitor future developments to ensure the sustainability of this positive trend.