Choice Hotels International Inc (CHH)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 480,512 | 399,039 | 382,298 | 373,170 | 375,028 | 414,119 | 424,095 | 457,055 | 478,601 | 508,569 | 522,657 | 484,332 | 428,933 | 338,925 | 230,885 | 119,721 | 122,053 | 173,891 | 225,245 | 319,922 |
| 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 |
| Operating profit margin | 30.32% | 25.69% | 24.65% | 24.18% | 24.29% | 26.76% | 27.60% | 30.94% | 34.14% | 38.39% | 42.36% | 42.33% | 40.11% | 34.65% | 26.68% | 16.20% | 15.77% | 20.49% | 23.74% | 28.70% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $480,512K ÷ $1,584,839K
= 30.32%
Choice Hotels International Inc's operating profit margin has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The margin started at a relatively high level of 28.70% in March 2020 but decreased to 15.77% by December 2020, indicating a decline in profitability.
Subsequently, there was an upward trend in the operating profit margin, reaching 40.11% by December 2021 and peaking at 42.36% by June 30, 2022. This substantial improvement suggests that the company managed to enhance its operational efficiency and profitability during this period.
However, from September 2022 onwards, there was a downward trend in the operating profit margin, with a decline to 24.29% by December 31, 2023, before a slight increase to 30.32% by December 31, 2024. This indicates that the company may have faced challenges in maintaining its profitability during this period.
Overall, Choice Hotels International Inc's operating profit margin has shown volatility over the analyzed period, with both positive and negative trends. It would be prudent for stakeholders to further investigate the factors contributing to these fluctuations to assess the company's financial health and performance accurately.
Peer comparison
Dec 31, 2024