Choice Hotels International Inc (CHH)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	1,114,820	1,091,715	1,072,473	1,050,230
Total current assets	US$ in thousands	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	236,589	260,264	276,864	250,671
Total current liabilities	US$ in thousands	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	325,888	316,304	321,008	303,871
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, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,544,165K ÷ ($296,530K – $942,690K)
= —

Choice Hotels International Inc's working capital turnover has experienced variability over the periods presented. The working capital turnover indicates the efficiency of the company in utilizing its working capital to generate sales. A higher turnover ratio implies that the company is effectively using its working capital to support revenue generation.

Based on the data provided, we can see fluctuations in the working capital turnover ratio. In some periods, like in September 2022, the ratio is notably high at 40.43, indicating a strong efficiency in converting working capital into revenue. However, in other periods, such as March 2021, the ratio is lower at 2.97, suggesting a lower efficiency in utilizing working capital to drive sales.

Given the fluctuations in the working capital turnover ratio, it is important for stakeholders to further investigate the underlying reasons for the changes in efficiency and assess the company's management of working capital in different periods to understand the overall trend and potential areas for improvement.