Choice Hotels International Inc (CHH)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Net income (ttm) US$ in thousands 299,665 252,814 239,122 236,696 258,507 285,067 296,123 317,581 332,152 340,722 354,297 334,011 288,957 232,739 130,584 42,261 75,387 109,691 171,430 248,260
Total stockholders’ equity US$ in thousands -45,271 -96,152 -146,779 6,727 35,598 72,413 54,691 47,008 154,660 284,511 416,725 314,645 265,882 212,146 104,933 19,235 -5,752 -21,404 -42,752 -43,854
ROE — — — 3,518.60% 726.18% 393.67% 541.45% 675.59% 214.76% 119.76% 85.02% 106.15% 108.68% 109.71% 124.45% 219.71% — — — —

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $299,665K ÷ $-45,271K
= —

Choice Hotels International Inc's return on equity (ROE) has shown significant fluctuations over the reported periods. The ROE was not available for the first three quarters of 2020 but saw a substantial increase to 219.71% in March 2021. This high ROE indicates that the company was generating significant profits relative to its shareholders' equity.

The ROE remained relatively high throughout 2021 and early 2022 but started to decrease gradually from June 2022 until September 2023. The declining trend suggests that the company's profitability relative to shareholders' equity was diminishing during this period.

However, there was a notable spike in ROE to 3,518.60% in March 2024, signifying a significant improvement in profitability and efficiency in generating returns for shareholders. This exceptional performance could be attributed to various factors such as increased revenues, effective cost management, or strategic business decisions.

Overall, Choice Hotels International Inc's ROE has displayed volatility over the reported periods, with periods of high and low returns. It is crucial for investors and analysts to closely monitor the company's financial performance and management decisions to understand the factors driving these fluctuations in ROE.