Choice Hotels International Inc (CHH)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 395,645 | 329,622 | 313,703 | 309,669 | 336,956 | 371,440 | 386,987 | 416,566 | 436,806 | 450,976 | 465,789 | 435,517 | 376,492 | 293,544 | 166,049 | 51,317 | 53,006 | 104,987 | 166,817 | 263,849 |
| Revenue (ttm) | US$ in thousands | 1,584,839 | 1,553,465 | 1,551,058 | 1,543,322 | 1,544,165 | 1,547,751 | 1,536,460 | 1,477,014 | 1,401,949 | 1,324,605 | 1,233,708 | 1,144,078 | 1,069,298 | 978,053 | 865,455 | 738,844 | 774,072 | 848,763 | 948,724 | 1,114,675 |
| Pretax margin | 24.96% | 21.22% | 20.23% | 20.07% | 21.82% | 24.00% | 25.19% | 28.20% | 31.16% | 34.05% | 37.76% | 38.07% | 35.21% | 30.01% | 19.19% | 6.95% | 6.85% | 12.37% | 17.58% | 23.67% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $395,645K ÷ $1,584,839K
= 24.96%
Choice Hotels International Inc's pretax margin has demonstrated fluctuations over the past few years.
From March 31, 2020, to June 30, 2020, the pretax margin decreased from 23.67% to 17.58%. This decline continued, reaching its lowest point on December 31, 2020, with a pretax margin of 6.85%.
However, the pretax margin began to improve in the following periods, showing a steady increase through March 31, 2022, when it reached 38.07%. The company maintained relatively high pretax margins during this period, staying above 30% for several quarters.
From June 30, 2022, the pretax margin started to decline gradually, falling to 21.22% on September 30, 2024. By December 31, 2024, the pretax margin had recovered slightly, reaching 24.96%.
Overall, the trend in pretax margin for Choice Hotels International Inc indicates periods of both growth and decline in profitability. Investors and stakeholders may want to monitor the company's financial performance closely to assess its ability to maintain and improve profitability over time.
Peer comparison
Dec 31, 2024