Choice Hotels International Inc (CHH)
Total asset 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 |
| Total assets | US$ in thousands | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 | 1,386,670 |
| Total asset turnover | 0.64 | 0.67 | 0.55 | 0.49 | 0.80 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,544,160K ÷ $2,394,800K
= 0.64
Choice Hotels International Inc's total asset turnover has fluctuated over the past five years, ranging from a low of 0.49 in 2020 to a high of 0.80 in 2019. The total asset turnover ratio indicates that, on average, the company generated $0.64 in revenue for every dollar of assets in 2023, compared to $0.67 in 2022 and $0.55 in 2021.
A lower total asset turnover ratio may suggest that the company is not effectively utilizing its assets to generate revenue. Conversely, a higher ratio indicates more efficient asset utilization.
Overall, the trend in total asset turnover for Choice Hotels International Inc shows some variability, which may warrant further investigation into the company's asset management and revenue generation strategies to ensure optimal performance.
Peer comparison
Dec 31, 2023