Choice Hotels International (Choice Hotels International) EBIT : $401 Mil (TTM As of Dec. 2023)

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What is Choice Hotels International EBIT?

Choice Hotels International's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $53 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $401 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Choice Hotels International's annualized ROC % for the quarter that ended in Dec. 2023 was 12.74%. Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 36.54%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Choice Hotels International's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.30%.

Choice Hotels International EBIT Historical Data

The historical data trend for Choice Hotels International's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Choice Hotels International EBIT Chart

Choice Hotels International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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316.74

102.03

423.17

480.60

400.74

Choice Hotels International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
EBIT	Get a 7-Day Free Trial															81.88	81.58	128.82	137.40	52.94

Competitive Comparison of Choice Hotels International's EBIT

For the Lodging subindustry, Choice Hotels International's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Choice Hotels International's EV-to-EBIT Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Choice Hotels International's EV-to-EBIT falls into.

Choice Hotels International EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $401 Mil.

Choice Hotels International (NYSE:CHH) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Choice Hotels International's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	389.04 * ( 1 - 18.87% )	/	( (2077.783	+	2877.213)	/ 2 )
=	315.628152	/	2477.498
=	12.74 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2232.237	-	220.636	-	( 36.432	-	max(0, 418.994	-	352.812	+	36.432	))
=	2077.783

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2394.799	-	163.746	-	( 26.754	-	max(0, 942.69	-	296.53	+	26.754	))
=	2877.213

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Choice Hotels International's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	211.772	/	( ( (560.245 + max(-156.667, 0))	+	(598.882 + max(-204.457, 0)) )	/	2 )
=	211.772	/	( ( 560.245	+	598.882 )	/	2 )
=	211.772	/	579.5635
=	36.54 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(223.781	+	0	+	34.13)	-	(220.636	+	107.802	+	86.14)
=	-156.667

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(195.896	+	0	+	38.831)	-	(163.746	+	108.316	+	167.122)
=	-204.457

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Choice Hotels International's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	400.736	/	7567.792
	=	5.30 %

Choice Hotels International EBIT Related Terms

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Choice Hotels International (Choice Hotels International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Choice Hotels International Inc (NYSE:CHH) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

CZH:Germany

Address

1 Choice Hotels Circle, Suite 400, Rockville, MD, USA, 20850

Website

https://www.choicehotels.com

As of Dec. 31, 2022, Choice Hotels operated 628,000 rooms across 13 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands. Choice added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Choice closed on its Radisson acquisition in August 2022, which will add around 70,000 rooms. Franchises are 99% of total revenue, and the United States represents 79% of total rooms in 2022.

Executives

Dominic Dragisich	officer: Chief Financial Officer	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Noha Abdalla	officer: Chief Marketing Officer	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
William L Jews	director	C/O FORTRESS INTERNATIONAL GROUP, INC., 7226 LEE DEFOREST DRIVE, SUITE 203, COLUMBIA, MD 21046
Scott E Oaksmith	officer: Controller	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Patrick Cimerola	officer: Senior Vice President	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Simone Wu	officer: Senior Vice President	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Brian Bainum	director	8171 MAPLE LAWN BLVD, SUITE 375, FULTON MD 20759
John P Tague	director
David A Pepper	officer: SVP, Franchise Development	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
John Bonds	officer: Senior Vice President	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Sanchez Raul Ramirez	officer: Chief Strat & Intl Op Officer	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Elizabeth A Redmond	officer: Principal Accounting Officer	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Donna F Vieira	director	300 CONTINENTAL DRIVE, NEWARK DE 19713
Patrick Pacious	officer: Senior Vice President	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Liza Landsman	director	1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850