Choice Hotels International Inc (CHH)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 463,773 | 375,028 | 478,601 | 428,933 | 122,053 |
| Revenue | US$ in thousands | 1,584,840 | 1,544,160 | 1,401,950 | 1,069,300 | 774,072 |
| Operating profit margin | 29.26% | 24.29% | 34.14% | 40.11% | 15.77% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $463,773K ÷ $1,584,840K
= 29.26%
Choice Hotels International Inc's operating profit margin has shown fluctuations over the past five years. The margin increased significantly from 15.77% as of December 31, 2020, to 40.11% as of December 31, 2021, indicating improved operating efficiency and profitability. However, in the following years, the margin experienced some variability. It decreased to 34.14% by December 31, 2022, before dropping further to 24.29% by December 31, 2023. The most recent data point shows a slight recovery, with the operating profit margin standing at 29.26% as of December 31, 2024.
The fluctuations in Choice Hotels International Inc's operating profit margin suggest changes in the company's cost structure, pricing strategies, or overall operational performance. It is essential for the company to closely monitor these fluctuations and identify the underlying reasons behind the changes to maintain sustainable profitability in the long run.
Peer comparison
Dec 31, 2024