Choice Hotels International Inc (CHH)

Receivables 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
Revenue (ttm)	US$ in thousands	1,544,165	1,547,751	1,536,460	1,477,014	1,401,949	1,324,605	1,233,708	1,144,078	1,069,298	978,053	865,455	738,844	774,072	848,763	948,724	1,114,675	1,114,820	1,091,715	1,072,473	1,050,230
Receivables	US$ in thousands	230,945	282,250	278,150	271,932	273,839	350,517	260,773	234,008	220,111	269,333	272,271	197,831	118,731	205,453	187,885	182,995	141,566	171,802	181,452	153,969
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,544,165K ÷ $230,945K
= 6.69

Choice Hotels International Inc's receivables turnover ratio has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period. A higher receivables turnover ratio is generally preferable as it signifies that the company is collecting its outstanding receivables more quickly.

Looking at the data provided, it is evident that there have been ups and downs in the receivables turnover ratio of Choice Hotels International Inc. The ratio ranged from a low of 3.18 to a high of 7.87 over the past several quarters. The company had a relatively lower receivables turnover ratio in the earlier periods, gradually improving to reach a peak in the most recent quarter.

The trend in the receivables turnover ratio indicates that the company has been more effective in collecting its accounts receivable in recent periods compared to earlier quarters. This improvement suggests that Choice Hotels International Inc has been managing its receivables more efficiently and collecting payments from customers at a faster rate.

However, it is important to further analyze the reasons behind the fluctuations in the receivables turnover ratio to understand if there are any underlying issues affecting the company's accounts receivable management. Additional information on the company's credit policies, customer payment behavior, and industry trends would be beneficial in gaining a deeper understanding of Choice Hotels International Inc's receivables turnover performance.