Choice Hotels International Inc (CHH)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	375,028	478,601	428,933	121,667	318,538
Revenue	US$ in thousands	1,544,160	1,401,950	1,069,300	774,072	1,114,820
Operating profit margin		24.29%	34.14%	40.11%	15.72%	28.57%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $375,028K ÷ $1,544,160K
= 24.29%

Choice Hotels International Inc's operating profit margin has experienced fluctuations over the past five years. The margin decreased significantly from 40.11% in 2021 to 15.72% in 2020, indicating a sharp decline in profitability. However, the margin improved in 2022 to 34.14% before declining again to 24.29% in 2023.

The operating profit margin measures the efficiency of the company's operations in generating profit from its core business activities. A higher margin reflects effective cost management and revenue generation. The fluctuations in Choice Hotels International Inc's operating profit margin suggest variable performance in managing operating expenses and revenue streams. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors driving these fluctuations in profitability.