Choice Hotels International Inc (CHH)

Payables 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
Cost of revenue (ttm)	US$ in thousands	319,046	279,262	294,551	270,635	241,373	235,165	200,073	190,655	190,693	193,276	193,879	203,373	202,005	172,129	174,691	177,707	198,589	203,561	203,477	202,767
Payables	US$ in thousands	131,284	124,113	120,977	93,135	118,863	129,856	106,427	89,826	81,169	88,056	90,407	70,980	83,329	80,191	57,814	68,987	73,449	84,512	96,752	72,086
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $319,046K ÷ $131,284K
= 2.43

Choice Hotels International Inc's payables turnover ratio has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its average accounts payable balance in a given period.

In the most recent quarter, the payables turnover ratio was 2.43, which suggests that the company paid off its accounts payable approximately 2.43 times during the period. This indicates a moderate level of efficiency in managing its payables compared to previous quarters.

Looking at the trend over the past few quarters, there have been some variations in the payables turnover ratio. For example, in March 2020, the ratio was 2.58, showing a relatively high level of efficiency in managing payables, while in September 2022, the ratio was 1.81, indicating a decrease in efficiency during that period.

Overall, analyzing the payables turnover ratio can provide insights into how effectively Choice Hotels International Inc is managing its accounts payable and its relationships with suppliers. Further investigation into the company's payment policies and supplier relationships may help provide additional context to these fluctuations in the payables turnover ratio.