Choice Hotels International Inc (CHH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,544,160	1,401,950	1,069,300	774,072	1,114,820
Property, plant and equipment	US$ in thousands	493,478	427,306	377,367	334,901	351,502
Fixed asset turnover		3.13	3.28	2.83	2.31	3.17

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,544,160K ÷ $493,478K
= 3.13

Choice Hotels International Inc's fixed asset turnover ratio has fluctuated over the past five years. The ratio was relatively high in 2022 at 3.28, indicating that the company generated $3.28 in revenue for every dollar invested in fixed assets during that year. However, the ratio decreased in 2023 to 3.13, suggesting a slight decline in efficiency in utilizing fixed assets to generate revenue.

Compared to 2021 and 2020 where the ratios were 2.83 and 2.31 respectively, there has been an overall improvement in efficiency in recent years. The company's fixed asset turnover was particularly strong in 2019 at 3.17, indicating that Choice Hotels International Inc was effectively utilizing its fixed assets to generate revenue that year.

Overall, the trend in fixed asset turnover ratios suggests that Choice Hotels International Inc has generally been efficient in generating revenue from its fixed assets, with some fluctuations in performance over the past five years. It would be beneficial for the company to continue monitoring and optimizing its use of fixed assets to maintain or improve efficiency in the future.