Choice Hotels International Inc (CHH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 484,129 | 399,330 | 377,541 | 372,841 | 378,427 | 426,169 | 434,910 | 459,471 | 477,097 | 471,139 | 488,228 | 458,395 | 403,188 | 327,019 | 218,782 | 105,441 | 108,225 | 175,846 | 223,268 | 320,242 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | — | — | — | 5,542.46% | 1,063.06% | 588.53% | 795.21% | 977.43% | 308.48% | 165.60% | 117.16% | 145.69% | 151.64% | 154.15% | 208.50% | 548.17% | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $484,129K ÷ ($—K + $-45,271K)
= —
Choice Hotels International Inc's return on total capital shows significant fluctuations over the period analyzed. The ratio was not available for the March, June, and September quarters in 2020. Starting from March 2021, the return on total capital spiked to 548.17%, indicating a substantial increase in profitability relative to the capital invested.
The ratio remained relatively high throughout 2021 and 2022, with values ranging from 117.16% to 977.43%. This suggests that Choice Hotels International Inc was able to generate strong returns on the total capital deployed during these periods.
In the latter part of 2023 and continuing into the first quarter of 2024, the return on total capital experienced a significant surge, reaching as high as 5,542.46% in March 2024. This exceptional performance indicates a substantial increase in profitability relative to the total capital employed during this time.
However, the data indicates missing values for the return on total capital for the second half of 2024, which could imply that the information for this period is not yet available or not disclosed.
Overall, the trend in Choice Hotels International Inc's return on total capital showcases both periods of exceptional profitability and potential data gaps, necessitating further analysis to understand the underlying factors contributing to these fluctuations.
Peer comparison
Dec 31, 2024