Choice Hotels International Inc (CHH)
Working capital 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 current assets | US$ in thousands | 296,530 | 347,922 | 761,661 | 432,914 | 236,589 |
| Total current liabilities | US$ in thousands | 942,690 | 435,898 | 570,295 | 255,847 | 325,888 |
| Working capital turnover | — | — | 5.59 | 4.37 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,544,160K ÷ ($296,530K – $942,690K)
= —
Based on the provided data, the working capital turnover for Choice Hotels International Inc was not available for the years ending in December 2023 and 2019. However, for the years ending in December 2021, 2022, and 2020, the working capital turnover ratios were 5.59, 4.37, and — respectively.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates that the company is able to generate more revenue with its current level of working capital.
In this case, Choice Hotels International Inc demonstrated an improvement in its working capital turnover from 4.37 in 2020 to 5.59 in 2021, suggesting a more efficient use of working capital to drive sales. However, without data for 2019 and 2023, it is challenging to determine the overall trend in the company's working capital turnover performance over the five-year period.
To gain a more comprehensive understanding of the company's working capital management efficiency, it would be beneficial to analyze additional financial metrics and trends in conjunction with the working capital turnover ratio.
Peer comparison
Dec 31, 2023