Choice Hotels International Inc (CHH)

Payables 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
Payables	US$ in thousands	131,284	118,863	81,169	83,329	73,449
Payables turnover		2.43	2.03	2.35	2.42	2.70

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $318,858K ÷ $131,284K
= 2.43

Choice Hotels International Inc's payables turnover ratio has fluctuated over the past five years. The ratio was 2.43 in 2023, indicating that the company paid its suppliers approximately 2.43 times during the year. This represents an improvement from the previous year when the ratio was 2.03.

In 2021, the payables turnover ratio was 2.35, slightly lower than in 2020 when it was 2.42. The ratio was highest in 2019 at 2.70, demonstrating that the company paid its suppliers more frequently that year compared to the subsequent years.

Overall, the trend in payables turnover suggests that Choice Hotels International Inc has been managing its accounts payable effectively, with a consistent level of payments being made to suppliers over the years. This ratio can provide insights into the company's liquidity and efficiency in managing its working capital.