Choice Hotels International Inc (CHH)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 258,507 | 332,152 | 288,957 | 75,387 | 222,878 |
| Total assets | US$ in thousands | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 | 1,386,670 |
| ROA | 10.79% | 15.80% | 14.96% | 4.75% | 16.07% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $258,507K ÷ $2,394,800K
= 10.79%
Choice Hotels International Inc's return on assets (ROA) has experienced fluctuations over the past five years. In 2023, the ROA decreased to 10.79%, compared to 15.80% in 2022 and 14.96% in 2021. This decline indicates a reduction in the company's ability to generate profit from its assets in the most recent year.
The 2023 ROA of 10.79% also contrasts significantly with the higher ROA of 16.07% in 2019. This suggests a general downward trend in the company's asset utilization efficiency over this period. The noticeable increase in ROA from 4.75% in 2020 to 10.79% in 2023, however, may indicate some recovery in the company's asset profitability after a lower point in 2020.
Overall, the fluctuating ROA values of Choice Hotels International Inc reflect varying levels of success in generating profits from its assets in recent years, emphasizing the importance of monitoring and analyzing this metric for insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023