Choice Hotels International Inc (CHH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,530,530 | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 |
| Operating ROA | 18.33% | 15.66% | 22.77% | 22.20% | 7.69% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $463,773K ÷ $2,530,530K
= 18.33%
Choice Hotels International Inc's operating return on assets (Operating ROA) has shown significant improvement over the past years. The ratio increased from 7.69% on December 31, 2020, to 22.20% on December 31, 2021, indicating a substantial enhancement in the company's ability to generate operating income relative to its total assets.
The upward trend continued through 2022 and 2023, with operating ROA reaching 22.77% and 15.66%, respectively. However, there was a slight dip in this ratio to 18.33% by December 31, 2024. Overall, the company has demonstrated a strong operational efficiency, as reflected in its ability to generate higher returns from its assets over the years. It would be beneficial for stakeholders to monitor this ratio closely to assess the company's operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2024