Choice Hotels International Inc (CHH)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -45,271 | 35,598 | 154,660 | 265,882 | -5,752 |
| ROE | — | 726.18% | 214.76% | 108.68% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $299,665K ÷ $-45,271K
= —
Choice Hotels International Inc's return on equity (ROE) has shown significant fluctuations over the years. The ROE stood at 108.68% as of December 31, 2021, indicating strong profitability relative to shareholders' equity. This metric improved even further to 214.76% by December 31, 2022, suggesting a substantial increase in the company's ability to generate profit from the shareholders' investment.
By December 31, 2023, the ROE skyrocketed to 726.18%, reaching an exceptionally high level compared to previous years. This stellar performance implies that Choice Hotels International Inc efficiently utilized equity to generate significant returns for the shareholders. However, the absence of ROE data for December 31, 2020, and 2024 makes it challenging to assess the trend accurately.
Overall, the increasing trend in ROE from 2021 to 2023 reflects the company's effectiveness in utilizing shareholder funds to generate profits. It would be important to monitor future ROE figures to assess the sustainability of this remarkable performance and understand the factors driving such significant fluctuations in return on equity for Choice Hotels International Inc.
Peer comparison
Dec 31, 2024