Choice Hotels International Inc (CHH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.20 | — | — | — | — | — | — | — | 7.92 | — | — | — | — | — | — | — | — | 10.02 | 9.81 | 9.11 |
| Receivables turnover | 6.69 | 5.48 | 5.52 | 5.43 | 5.12 | 3.78 | 4.73 | 4.89 | 4.86 | 3.63 | 3.18 | 3.73 | 6.52 | 4.13 | 5.05 | 6.09 | 7.87 | 6.35 | 5.91 | 6.82 |
| 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 |
| Working capital turnover | — | — | — | — | — | 40.43 | 3.07 | 5.10 | 5.59 | 8.13 | 2.97 | 3.67 | 4.37 | 5.20 | 3.10 | 4.04 | — | — | — | — |
Choice Hotels International Inc has shown a consistent trend of high inventory turnover, indicating efficiency in managing and selling inventory. The receivables turnover has been fluctuating over the periods but generally indicates a good ability to collect outstanding receivables from customers. Payables turnover has also shown fluctuations, with an average ability to pay off suppliers within a reasonable timeframe.
The working capital turnover data is missing for some periods, but when available, it shows varying levels of efficiency in generating sales relative to working capital. Overall, the company's activity ratios suggest effective management of inventory, receivables, payables, and working capital to support its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 39.66 | — | — | — | — | — | — | — | 46.08 | — | — | — | — | — | — | — | — | 36.44 | 37.19 | 40.07 |
| Days of sales outstanding (DSO) | days | 54.59 | 66.56 | 66.08 | 67.20 | 71.29 | 96.59 | 77.15 | 74.66 | 75.13 | 100.51 | 114.83 | 97.73 | 55.99 | 88.35 | 72.28 | 59.92 | 46.35 | 57.44 | 61.75 | 53.51 |
| 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 |
Days of Inventory on Hand (DOH) measures how long it takes for a company to sell its inventory. In the recent quarter, Choice Hotels International Inc had 39.66 days of inventory on hand, indicating an improvement from the previous quarter's 46.08 days. The downward trend in DOH suggests that the company is managing its inventory efficiently by turning over its inventory more quickly.
Days of Sales Outstanding (DSO) assesses how long it takes for a company to collect cash from its credit sales. In the most recent quarter, Choice Hotels had a DSO of 54.59 days. This figure has shown a notable decrease from the prior quarter's 71.29 days, indicating that the company is collecting its receivables more efficiently.
Number of Days of Payables measures how long a company takes to pay off its suppliers. In the latest quarter, Choice Hotels had 150.19 days of payables, showing an increase from the previous quarter's 125.61 days. The rise in payables days suggests that the company is taking longer to settle its payables, potentially improving its cash flow management by retaining cash for a longer period.
Overall, based on the trends in these activity ratios, Choice Hotels International Inc appears to be effectively managing its inventory, collecting receivables more promptly, and strategically extending its payment periods to enhance its cash flow efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.13 | 3.29 | 3.42 | 3.40 | 3.28 | 3.17 | 3.87 | 2.90 | 2.83 | 2.78 | 2.53 | 2.20 | 2.31 | 2.50 | 2.71 | 3.18 | 3.17 | 3.14 | 7.19 | 7.79 |
| Total asset turnover | 0.64 | 0.69 | 0.71 | 0.70 | 0.67 | 0.61 | 0.59 | 0.58 | 0.55 | 0.52 | 0.50 | 0.47 | 0.49 | 0.54 | 0.56 | 0.65 | 0.80 | 0.79 | 0.88 | 0.89 |
Choice Hotels International Inc's fixed asset turnover ratio has been relatively stable over the past few quarters, averaging around 3 across the periods. This indicates that the company is generating approximately $3.13 to $3.42 in sales for every dollar invested in fixed assets. The fluctuations in the fixed asset turnover ratio may be due to changes in the company's operational efficiency in utilizing its fixed assets to generate revenue.
In terms of total asset turnover, Choice Hotels' performance has improved compared to the previous year, with the ratio increasing from 0.47 in March 2021 to 0.70 in March 2023. This indicates that the company is generating approximately $0.64 to $0.71 in sales for every dollar of total assets it holds. The increase in total asset turnover suggests that Choice Hotels is becoming more effective in utilizing its assets to generate revenue.
Overall, the long-term activity ratios suggest that Choice Hotels International Inc is efficiently utilizing its fixed and total assets to generate sales revenue, with a relatively stable fixed asset turnover and improving total asset turnover over the periods analyzed.