Choice Hotels International Inc (CHH)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,225,119	1,268,489	1,241,909	1,206,379	1,160,576	1,089,440	1,033,635	953,423	878,605	784,777	671,576	535,471	572,067	740,053	837,452	1,000,387	979,650	956,545	937,387	915,854
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
Gross profit margin		79.34%	81.96%	80.83%	81.68%	82.78%	82.25%	83.78%	83.34%	82.17%	80.24%	77.60%	72.47%	73.90%	87.19%	88.27%	89.75%	87.88%	87.62%	87.40%	87.21%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,225,119K ÷ $1,544,165K
= 79.34%

Choice Hotels International Inc's gross profit margin has shown some fluctuations over the past few quarters. The trend indicates a general decrease in gross profit margins from the beginning of 2020 to mid-2021, followed by an increase in the latter part of 2021 and into 2022.

In 2022 and 2023, the gross profit margin has been relatively stable around the high 70% to low 80% range. The latest data as of December 31, 2023, shows a gross profit margin of 79.34%, which is in line with the recent trend. Overall, the company has maintained relatively healthy gross profit margins above 70%, indicating efficient cost management and pricing strategies during the periods analyzed.

It is important to consider the industry benchmarks and the company's business model when interpreting these figures further. Additionally, monitoring any significant changes in the gross profit margin over time can provide insights into the company's profitability and operational efficiency.