Choice Hotels International Inc (CHH)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 395,645 | 336,956 | 436,806 | 376,492 | 53,006 |
| Revenue | US$ in thousands | 1,584,840 | 1,544,160 | 1,401,950 | 1,069,300 | 774,072 |
| Pretax margin | 24.96% | 21.82% | 31.16% | 35.21% | 6.85% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $395,645K ÷ $1,584,840K
= 24.96%
Choice Hotels International Inc's pretax margin has shown significant fluctuations over the past five years. In December 2020, the pretax margin stood at 6.85%, indicating that for every dollar of revenue generated, the company retained $0.0685 before taxes. However, there was a substantial improvement in December 2021, with the pretax margin increasing to 35.21%, reflecting stronger cost management or increased revenue generation.
In the following years, the pretax margin decreased slightly to 31.16% in December 2022, then dropped further to 21.82% by December 2023. This decline suggests that the company may have faced challenges in controlling costs or experienced a slowdown in revenue growth during these periods.
However, there was a positive rebound in December 2024, as the pretax margin rose to 24.96%, indicating potential improvements in profitability. It is essential for investors and stakeholders to closely monitor Choice Hotels International Inc's pretax margin trend to assess the company's operational efficiency and overall financial performance.
Peer comparison
Dec 31, 2024