Choice Hotels International Inc (CHH)

Net 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
Net income (ttm)	US$ in thousands	299,665	252,814	239,122	236,696	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
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
Net profit margin		18.91%	16.27%	15.42%	15.34%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $299,665K ÷ $1,584,839K
= 18.91%

Choice Hotels International Inc's net profit margin has shown fluctuations over the past few years. Starting at a high of 22.27% in March 2020, the net profit margin gradually declined to 9.74% by December 2020. This downward trend continued until March 2021, where the net profit margin reached its lowest point at 5.72%.

From June 2021 onwards, there was a notable improvement in the net profit margin, with percentages increasing steadily and exceeding previous highs. The highest net profit margin was recorded in December 2022 at 27.02%. Subsequently, the net profit margin fluctuated around the mid-20% range, showing some variability but generally maintaining a positive trend.

Overall, Choice Hotels International Inc's net profit margin has displayed a mix of volatility and growth. It is essential for the company to closely monitor and manage expenses and revenue streams to sustain or enhance profitability in the future.