Choice Hotels International Inc (CHH)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 318,858 | 241,637 | 191,114 | 201,809 | 198,589 |
| Inventory | US$ in thousands | 34,669 | 0 | 0 | — | — |
| Inventory turnover | 9.20 | — | — | — | — |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $318,858K ÷ $34,669K
= 9.20
Based on the provided data, Choice Hotels International Inc's inventory turnover ratio for the year ending December 31, 2023, stands at 9.20. This indicates that the company's inventory was sold and replaced approximately 9.20 times during the year.
Since there is no data available for inventory turnover in the previous years, it's challenging to assess the trend or make a year-on-year comparison. However, a high inventory turnover ratio like 9.20 suggests that Choice Hotels International Inc efficiently manages its inventory levels, turning over its inventory quickly.
A high inventory turnover ratio can be a positive indicator of effective inventory management, minimizing the risk of obsolete inventory and potentially reducing storage costs. It also indicates that the company is effectively selling its products, which can lead to improved cash flow and profitability.
Nevertheless, without historical data for comparison, it is important to monitor future trends to see if the company maintains or improves its inventory turnover ratio over time, ensuring sustainable inventory management practices.
Peer comparison
Dec 31, 2023