Choice Hotels International Inc (CHH)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,584,839 1,553,465 1,551,058 1,543,322 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
Property, plant and equipment US$ in thousands — — — — — 560,245 449,313 434,282 427,306 487,964 348,830 394,950 411,550 351,768 355,284 336,508 334,901 339,000 350,459 351,045
Fixed asset turnover — — — — — 2.76 3.42 3.40 3.28 2.71 3.54 2.90 2.60 2.78 2.44 2.20 2.31 2.50 2.71 3.18

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,584,839K ÷ $—K
= —

Choice Hotels International Inc's fixed asset turnover has exhibited fluctuation over the past few years. The ratio decreased from 3.18 in March 2020 to 2.31 in December 2020, indicating a decrease in the efficiency of generating revenue from fixed assets during this period. However, there was a slight improvement in the ratio in the subsequent quarters, reaching 2.90 in March 2022 and peaking at 3.54 in June 2022.

After reaching its highest point in June 2022, the fixed asset turnover ratio declined in the following quarters, dropping to 2.76 in September 2023. The data for the last quarters of 2023 and for the entirety of 2024 are not available, making it difficult to track the trend accurately for the most recent period.

Overall, the company's ability to generate sales from its fixed assets has shown some variability, with both improvements and declines in efficiency observed over the analyzed period. It would be important to monitor future data to assess whether the fluctuations in the fixed asset turnover ratio signify a longer-term trend or are more transient in nature.