Choice Hotels International Inc (CHH)

Working capital 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 current assets US$ in thousands 339,086 338,602 448,157 338,501 296,530 352,812 348,134 341,088 347,922 459,149 983,609 788,018 761,661 710,969 607,540 445,144 432,914 415,570 524,479 531,279
Total current liabilities US$ in thousands 462,721 478,786 452,090 919,512 942,690 418,994 406,686 369,574 435,898 426,383 582,351 563,513 570,295 590,594 315,975 243,800 255,847 252,420 218,737 255,420
Working capital turnover — — — — — — — — — 40.43 3.07 5.10 5.59 8.13 2.97 3.67 4.37 5.20 3.10 4.04

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,584,839K ÷ ($339,086K – $462,721K)
= —

Choice Hotels International Inc's working capital turnover has shown fluctuation over the past few quarters, ranging from a low of 2.97 in June 2021 to a high of 40.43 in September 2022. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its sales activities. On the other hand, a lower ratio may suggest inefficiencies in managing working capital, such as excess inventory or slow collections on accounts receivable.

Overall, Choice Hotels International Inc's working capital turnover has shown variability, which could be attributed to changes in its operating cycle, industry conditions, or business strategies. It will be important for the company to analyze the factors contributing to these fluctuations and take appropriate actions to maintain or improve its working capital turnover efficiency in the future.