Choice Hotels International Inc (CHH)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,544,165	1,547,751	1,536,460	1,477,014	1,401,949	1,324,605	1,233,708	1,144,078	1,069,298	978,053	865,455	738,844	774,072	848,763	948,724	1,114,675	1,114,820	1,091,715	1,072,473	1,050,230
Property, plant and equipment	US$ in thousands	493,478	469,771	449,313	434,282	427,306	417,431	319,161	394,950	377,367	351,768	342,121	336,508	334,901	339,000	350,459	351,045	351,502	347,343	149,084	134,861
Fixed asset turnover		3.13	3.29	3.42	3.40	3.28	3.17	3.87	2.90	2.83	2.78	2.53	2.20	2.31	2.50	2.71	3.18	3.17	3.14	7.19	7.79

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,544,165K ÷ $493,478K
= 3.13

Choice Hotels International Inc's fixed asset turnover ratio has shown fluctuations over time, ranging from a low of 2.20 in March 2021 to a high of 7.79 in June 2019. The ratio measures the effectiveness of the company in generating revenue from its investment in fixed assets, with higher ratios indicating better utilization of assets.

In recent quarters, the fixed asset turnover ratio has demonstrated a generally increasing trend, reaching 3.42 in June 2023 from 2.20 in March 2021. This suggests that the company has been more efficient in generating sales in relation to its investment in fixed assets.

However, there have been periods of fluctuation, for example, a notable decrease from 3.87 in June 2022 to 2.90 in March 2022. This could indicate a temporary decline in asset utilization efficiency during that period.

Overall, Choice Hotels International Inc's fixed asset turnover ratio has shown variability but has generally improved in recent quarters, indicating better efficiency in generating revenue from its fixed assets.