Choice Hotels International Inc (CHH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 482,776 | 400,736 | -388,969 | -192,151 | -509,403 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -45,271 | 35,598 | 154,660 | 265,882 | -5,752 |
| Return on total capital | — | 1,125.73% | -251.50% | -72.27% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $482,776K ÷ ($—K + $-45,271K)
= —
Choice Hotels International Inc's return on total capital has shown significant fluctuations over the years.
As of December 31, 2020, the return on total capital was not available. It then sharply declined to -72.27% as of December 31, 2021, indicating that the company did not generate an adequate return on its total invested capital.
The following year, as of December 31, 2022, the return on total capital deteriorated even further to -251.50%, suggesting that the company's capital was not efficiently utilized to generate profits.
However, there was a remarkable turnaround in the company's performance by December 31, 2023, with a notable return on total capital of 1,125.73%. This significant improvement indicates that Choice Hotels International Inc was able to generate substantial returns relative to its total capital investment.
Unfortunately, the return on total capital for December 31, 2024, is not available.
In conclusion, while there have been fluctuations in Choice Hotels International Inc's return on total capital in recent years, the notable improvement in 2023 demonstrates the potential for effective capital utilization within the company.
Peer comparison
Dec 31, 2024