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