Choice Hotels International Inc (CHH)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,584,840 | 1,544,160 | 1,401,950 | 1,069,300 | 774,072 |
| Total assets | US$ in thousands | 2,530,530 | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 |
| Total asset turnover | 0.63 | 0.64 | 0.67 | 0.55 | 0.49 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,584,840K ÷ $2,530,530K
= 0.63
Choice Hotels International Inc's total asset turnover has shown a positive trend over the past five years, increasing from 0.49 in December 31, 2020, to 0.63 in December 31, 2024. This indicates that the company is generating more revenue for every dollar of assets it holds.
A total asset turnover ratio of 0.63 in December 31, 2024, means that for every dollar of assets the company has, it generates $0.63 in revenue. This suggests that Choice Hotels International Inc is effectively utilizing its assets to drive sales and operations.
The peak total asset turnover of 0.67 in December 31, 2022, reflects a period of optimal efficiency in asset utilization. However, the slight decline in the ratio to 0.63 in December 31, 2024, warrants further monitoring to ensure continued efficient allocation of resources.
Overall, the improving trend in total asset turnover for Choice Hotels International Inc indicates enhanced operational efficiency and effective management of assets to support revenue generation and business growth.
Peer comparison
Dec 31, 2024