Choice Hotels International Inc (CHH)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,530,530	2,544,050	2,518,910	2,475,080	2,394,800	2,232,240	2,150,320	2,106,220	2,102,180	2,188,980	2,076,840	1,972,030	1,931,820	1,865,930	1,728,790	1,584,140	1,587,330	1,570,150	1,686,040	1,703,950
Operating ROA		18.99%	15.69%	15.18%	15.08%	15.66%	18.55%	19.72%	21.70%	22.77%	23.23%	25.17%	24.56%	22.20%	18.16%	13.36%	7.56%	7.69%	11.07%	13.36%	18.78%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $480,512K ÷ $2,530,530K
= 18.99%

Choice Hotels International Inc's operating return on assets (operating ROA) has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating ROA started at 18.78% on March 31, 2020, and then decreased to 7.69% by December 31, 2020. This decline continued into the following year, reaching a low of 7.56% on March 31, 2021.

However, a positive trend then emerged, with the operating ROA increasing to 25.17% by June 30, 2022. The trend continued to be mostly favorable, with the operating ROA hovering around the 20% mark until September 30, 2023. It then declined slightly to 15.08% by March 31, 2024, before experiencing a slight increase to 18.99% by December 31, 2024.

Overall, Choice Hotels International Inc's operating ROA has shown variability but has generally demonstrated an upward trend after a period of decline. This indicates that the company has been able to efficiently generate operating income relative to its assets, showcasing improved profitability during the latter part of the period under review.