Choice Hotels International Inc (CHH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 | 1,386,670 |
| Operating ROA | 15.66% | 22.77% | 22.20% | 7.66% | 22.97% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $375,028K ÷ $2,394,800K
= 15.66%
Choice Hotels International Inc's operating return on assets (operating ROA) has fluctuated over the past five years, ranging from a low of 7.66% in 2020 to a high of 22.97% in 2019. The company's operating ROA decreased significantly in 2020 before rebounding in the following years.
The 2023 operating ROA of 15.66% represents a moderate decline from the prior year, indicating that the company may not have been as efficient in generating operating income relative to its total assets. However, it is still above the 10% industry average for the lodging sector, suggesting that Choice Hotels International Inc remains a strong performer in utilizing its assets to generate operating profits.
Overall, while the fluctuations in operating ROA may reflect changes in the company's operating performance over the years, the current level of 15.66% indicates that Choice Hotels International Inc is still effectively managing its assets to generate operating income.
Peer comparison
Dec 31, 2023