Choice Hotels International Inc (CHH)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,584,839	1,553,465	1,551,058	1,543,322	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
Total assets	US$ in thousands	2,530,530	2,544,050	2,518,910	2,475,080	2,394,800	2,232,240	2,150,320	2,106,220	2,102,180	2,188,980	2,076,840	1,972,030	1,931,820	1,865,930	1,728,790	1,584,140	1,587,330	1,570,150	1,686,040	1,703,950
Total asset turnover		0.63	0.61	0.62	0.62	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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,584,839K ÷ $2,530,530K
= 0.63

Total asset turnover for Choice Hotels International Inc has shown a declining trend over the past few years. It decreased from 0.65 as of March 31, 2020, to 0.63 as of December 31, 2024. This indicates that the company is generating less revenue in relation to its total assets. While there was a slight improvement in the ratio from March 31, 2024, to June 30, 2024, it remained relatively stable around 0.62 to 0.63 for the rest of the period.

A lower total asset turnover may suggest inefficiencies in asset utilization or a decrease in sales relative to the size of the asset base. It is important for the company to closely monitor and address the factors contributing to this decline to improve operational efficiency and profitability in the future.