Choice Hotels International Inc (CHH)

Net 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
Net income (ttm)	US$ in thousands	258,507	285,067	296,123	317,581	332,152	340,722	354,297	334,011	288,957	232,739	130,584	42,261	75,387	109,691	171,430	248,260	222,878	212,180	215,900	221,350
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
Net profit margin		16.74%	18.42%	19.27%	21.50%	23.69%	25.72%	28.72%	29.19%	27.02%	23.80%	15.09%	5.72%	9.74%	12.92%	18.07%	22.27%	19.99%	19.44%	20.13%	21.08%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $258,507K ÷ $1,544,165K
= 16.74%

Choice Hotels International Inc's net profit margin has displayed some fluctuations over the past five years. The trend shows that the net profit margin has generally been on a decline since reaching a peak of 29.19% in Mar 31, 2022. However, it is encouraging to note that the net profit margin has remained above 15% consistently, indicating a healthy level of profitability.

The company's net profit margin hit a low of 5.72% in Jun 30, 2021 before experiencing a recovery in subsequent quarters. The recent figure of 16.74% for Dec 31, 2023 demonstrates an improvement compared to the previous quarter.

Overall, it is essential for the company to closely monitor and manage its costs and revenue generation to sustain profitability and work towards mitigating the recent decline in net profit margin.