Choice Hotels International Inc (CHH)

Gross profit margin

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
Gross profit (ttm) US$ in thousands 932,005 683,767 670,650 669,343 690,282 698,876 709,855 711,286 700,052 709,072 698,604 654,894 599,598 517,318 410,370 310,092 311,159 353,194 406,331 504,446
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
Gross profit margin 58.81% 44.02% 43.24% 43.37% 44.70% 45.15% 46.20% 48.16% 49.93% 53.53% 56.63% 57.24% 56.07% 52.89% 47.42% 41.97% 40.20% 41.61% 42.83% 45.25%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $932,005K ÷ $1,584,839K
= 58.81%

Choice Hotels International Inc's gross profit margin has fluctuated over the period from March 31, 2020, to December 31, 2024. The trend shows a general decline from 45.25% in March 2020 to a low of 40.20% in December 2020. However, the company then experienced a positive upturn with a gradual increase in the gross profit margin, reaching a peak of 58.81% in December 2024.

The company's gross profit margin improved significantly in the latter part of the period, with a substantial increase from 44.70% in December 2023 to 57.24% in March 2024. Subsequently, the margin remained relatively stable above 43%, except for a slight dip to 43.24% in June 2024.

The latest data indicates a strong gross profit margin of 58.81% in December 2024, suggesting that the company has been able to effectively manage its cost of goods sold and generate higher revenues compared to the costs associated with producing goods or services.

Overall, the improving trend in the gross profit margin reflects positively on Choice Hotels International Inc's ability to enhance profitability and operational efficiency over the analyzed period.