Choice Hotels International Inc (CHH)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	299,665	258,507	332,152	288,957	75,387
Revenue	US$ in thousands	1,584,840	1,544,160	1,401,950	1,069,300	774,072
Net profit margin		18.91%	16.74%	23.69%	27.02%	9.74%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $299,665K ÷ $1,584,840K
= 18.91%

Choice Hotels International Inc's net profit margin has shown variability over the past five years. In 2020, the net profit margin was reported at 9.74%, indicating that for every dollar of revenue generated, the company retained approximately $0.0974 as net profit.

The net profit margin saw a significant improvement in 2021, reaching 27.02%, suggesting that the company became more efficient in controlling its expenses or increasing its revenue relative to the previous year. This sharp increase in profitability may have been influenced by various factors such as cost-cutting measures, revenue growth, or operational efficiencies.

In 2022, the net profit margin slightly decreased to 23.69%, but remained relatively high compared to the base year of 2020. This indicates that Choice Hotels International Inc continued to maintain a strong level of profitability despite the slight dip.

In 2023, the net profit margin decreased further to 16.74%, showing a significant decline compared to the previous years. This decrease may be a result of increased costs, lower revenue, or other factors impacting the company's profitability.

Finally, in 2024, the net profit margin improved to 18.91%, indicating a slight recovery from the previous year. Overall, the fluctuation in Choice Hotels International Inc's net profit margin over the five-year period reflects the company's ability to adapt to changing market conditions and manage its profitability effectively.