Choice Hotels International Inc (CHH)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,544,160 | 1,401,950 | 1,069,300 | 774,072 | 1,114,820 |
| Receivables | US$ in thousands | 230,945 | 273,839 | 220,111 | 118,731 | 141,566 |
| Receivables turnover | 6.69 | 5.12 | 4.86 | 6.52 | 7.87 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,544,160K ÷ $230,945K
= 6.69
Choice Hotels International Inc's receivables turnover has fluctuated over the past five years, as indicated by the data provided.
In 2023, the receivables turnover ratio stood at 6.69, which represents an improvement from the previous year. This suggests that the company was able to collect its accounts receivable more efficiently in 2023 compared to 2022.
However, in 2022, the receivables turnover ratio decreased to 5.12 from 4.86 in 2021, indicating a slight decline in the efficiency of collecting receivables during that year.
The receivables turnover ratio was highest in 2019 at 7.87, suggesting that the company was collecting its accounts receivable at a faster rate that year compared to the subsequent years.
Overall, the trend of the receivables turnover ratio for Choice Hotels International Inc shows some variability, but it is important to analyze other factors such as industry benchmarks and company-specific circumstances to gain a more complete understanding of the efficiency of the company's accounts receivable management.
Peer comparison
Dec 31, 2023