Choice Hotels International Inc (CHH)

Return on assets (ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	258,507	285,067	296,123	317,581	332,152	340,722	354,297	334,011	288,957	232,739	130,584	42,261	75,387	109,691	171,430	248,260	222,878	212,180	215,900	221,350
Total assets	US$ in thousands	2,394,800	2,232,240	2,150,320	2,106,220	2,102,180	2,188,980	2,076,840	1,972,030	1,931,820	1,865,930	1,728,790	1,584,140	1,587,330	1,570,150	1,686,040	1,703,950	1,386,670	1,374,260	1,214,280	1,173,820
ROA		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%	16.07%	15.44%	17.78%	18.86%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $258,507K ÷ $2,394,800K
= 10.79%

Choice Hotels International Inc's return on assets (ROA) has shown fluctuations over the past few quarters. The ROA ranged from a low of 2.67% in the first quarter of 2022 to a high of 17.06% in the second quarter of 2022. Generally, the ROA has been trending positively since then, reaching 15.08% in the first quarter of 2023 and 12.77% in the second quarter of 2023.

The company's ROA peaked at 18.86% in the second quarter of 2019 and has since demonstrated a downward trend, although it has shown some signs of recovery in recent quarters. This indicates that the company has been effectively utilizing its assets to generate profits, although there may have been challenges impacting performance in certain periods.

Overall, the fluctuations in ROA suggest that Choice Hotels International Inc has been managing its assets and operations to varying degrees of efficiency. It may be beneficial for stakeholders to further assess the factors driving these fluctuations to ensure sustained profitability and long-term growth.