Choice Hotels International Inc (CHH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.81% | 44.02% | 43.24% | 43.37% | 44.70% | 45.15% | 46.20% | 48.16% | 49.93% | 53.53% | 56.63% | 57.24% | 56.07% | 52.89% | 47.42% | 41.97% | 40.20% | 41.61% | 42.83% | 45.25% |
| Operating profit margin | 30.32% | 25.69% | 24.65% | 24.18% | 24.29% | 26.76% | 27.60% | 30.94% | 34.14% | 38.39% | 42.36% | 42.33% | 40.11% | 34.65% | 26.68% | 16.20% | 15.77% | 20.49% | 23.74% | 28.70% |
| 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% |
| Net profit margin | 18.91% | 16.27% | 15.42% | 15.34% | 16.74% | 18.42% | 19.27% | 21.50% | 23.69% | 25.72% | 28.72% | 29.19% | 27.02% | 23.80% | 15.09% | 5.72% | 9.74% | 12.92% | 18.07% | 22.27% |
The profitability ratios of Choice Hotels International Inc show a positive trend over the analyzed period. The gross profit margin has steadily increased from 45.25% in March 2020 to a peak of 58.81% in December 2024. This indicates an improvement in the company's ability to generate profit from its operations.
Similarly, the operating profit margin also shows an upward trajectory, starting at 28.70% in March 2020 and reaching 30.32% by December 2024. This indicates that the company's operating efficiency has improved over time, leading to higher profitability.
The pretax margin follows a similar pattern, increasing from 23.67% in March 2020 to 24.96% in December 2024. This indicates that Choice Hotels International Inc has been able to manage its pre-tax expenses effectively and improve its profitability before taxes.
Lastly, the net profit margin, which represents the company's bottom-line profitability, has also shown a positive trend, increasing from 22.27% in March 2020 to 18.91% in December 2024. Although there was a dip in profitability in the middle of the analyzed period, the overall trend demonstrates an improvement in the company's ability to translate revenues into net income.
Overall, Choice Hotels International Inc has demonstrated consistent improvement in its profitability ratios over the analyzed period, reflecting strong operational efficiency and management of costs.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.84% | 9.94% | 9.49% | 9.56% | 10.79% | 12.77% | 13.77% | 15.08% | 15.80% | 15.57% | 17.06% | 16.94% | 14.96% | 12.47% | 7.55% | 2.67% | 4.75% | 6.99% | 10.17% | 14.57% |
| Return on total capital | — | — | — | 5,542.46% | 1,063.06% | 588.53% | 795.21% | 977.43% | 308.48% | 165.60% | 117.16% | 145.69% | 151.64% | 154.15% | 208.50% | 548.17% | — | — | — | — |
| Return on equity (ROE) | — | — | — | 3,518.60% | 726.18% | 393.67% | 541.45% | 675.59% | 214.76% | 119.76% | 85.02% | 106.15% | 108.68% | 109.71% | 124.45% | 219.71% | — | — | — | — |
Choice Hotels International Inc has shown consistently strong profitability ratios over the past few years. The Operating return on assets (Operating ROA) has been steadily increasing from 18.78% as of March 31, 2020, reaching a peak of 25.17% as of June 30, 2022. Although there have been slight fluctuations, the company has maintained a robust Operating ROA, indicating efficient use of its assets to generate operating income.
Similarly, the Return on assets (ROA) has seen a positive trend, starting at 14.57% on March 31, 2020, and reaching 11.84% by December 31, 2024. The ROA reflects the company's ability to generate profit from its total assets, and despite some fluctuations, Choice Hotels has managed to maintain a solid performance in this aspect.
The Return on total capital started showing data from March 31, 2021, with a notable increase from 548.17% to 1,063.06% by December 31, 2023. This improvement indicates the company's ability to generate profit from its total capital employed, reflecting strong financial performance and efficient capital allocation.
Lastly, the Return on equity (ROE) has been exceptional, with a significant surge from 219.71% on March 31, 2021, to 3,518.60% by March 31, 2024. The ROE represents the return generated on shareholders' equity and demonstrates the company's ability to deliver value to its shareholders through efficient operations and financial management.
In conclusion, Choice Hotels International Inc has showcased strong profitability ratios, indicating effective management of assets, capital, and equity to drive sustainable financial performance and create value for its stakeholders.