Choice Hotels International Inc (CHH)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	336,956	436,806	376,492	53,006	269,929
Revenue	US$ in thousands	1,544,160	1,401,950	1,069,300	774,072	1,114,820
Pretax margin		21.82%	31.16%	35.21%	6.85%	24.21%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $336,956K ÷ $1,544,160K
= 21.82%

Choice Hotels International Inc's pretax margin has shown fluctuation over the past five years. In 2023, the pretax margin was 21.82%, a decrease from 31.16% in 2022 and 35.21% in 2021. This downward trend indicates a decrease in the company's profitability before accounting for taxes. The significant decline from 2021 to 2022 followed by a further decrease in 2023 suggests potential challenges or economic factors impacting the company's ability to generate income relative to its total revenue. Further analysis of the company's cost structure, revenue streams, and operational efficiency may be warranted to understand the reasons behind the declining pretax margin.