Choice Hotels International Inc (CHH)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 299,665 | 258,507 | 332,152 | 288,957 | 75,387 |
| Total assets | US$ in thousands | 2,530,530 | 2,394,800 | 2,102,180 | 1,931,820 | 1,587,330 |
| ROA | 11.84% | 10.79% | 15.80% | 14.96% | 4.75% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $299,665K ÷ $2,530,530K
= 11.84%
Choice Hotels International Inc's return on assets (ROA) has shown a positive trend over the past five years, starting at 4.75% on December 31, 2020 and consistently increasing to 11.84% by December 31, 2024. This indicates that the company has been effectively generating profit relative to its total assets each year.
The significant increase in ROA from 2020 to 2022, reaching 15.80%, reflects improved asset utilization and efficiency in generating earnings. However, there was a slight decline in ROA in 2023 to 10.79%, suggesting potentially lower profitability or less effective asset management during that period.
Overall, Choice Hotels International Inc's ROA performance demonstrates a generally positive outlook, with a commendable improvement in profitability relative to its assets, although there may be fluctuations in efficiency and profitability from year to year that require further investigation and analysis.
Peer comparison
Dec 31, 2024