Choice Hotels International Inc (CHH)

Number of days of payables

		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
Payables turnover		2.43	2.25	2.43	2.91	2.03	1.81	1.88	2.12	2.35	2.19	2.14	2.87	2.42	2.15	3.02	2.58	2.70	2.41	2.10	2.81
Number of days of payables	days	150.19	162.22	149.91	125.61	179.74	201.55	194.16	171.97	155.36	166.29	170.20	127.39	150.57	170.05	120.80	141.70	135.00	151.54	173.56	129.76

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 2.43
= 150.19

Choice Hotels International Inc's number of days of payables has fluctuated over the past few quarters, indicating varying efficiency in managing its accounts payable.

The trend shows a decrease in the number of days of payables from the third quarter of 2022 to the first quarter of 2023, indicating that the company may have been paying its suppliers more quickly during that period. However, this trend reversed in the second and third quarters of 2023, with an increase in the number of days of payables, suggesting that the company may have started taking more time to pay its suppliers.

Compared to the baseline of 150 days, the number of days of payables has exceeded this threshold in most quarters, indicating that Choice Hotels International Inc typically takes more than five months to pay its suppliers. This could potentially strain the company's cash flow if payment terms become less favorable or if there are delays in collections from customers.

Overall, monitoring and potentially improving the management of payables could help Choice Hotels International Inc optimize its working capital and cash flow position.