Choice Hotels International (FRA:CZH) ROCE % : 12.82% (As of Dec. 2023)

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What is Choice Hotels International ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Choice Hotels International's annualized ROCE % for the quarter that ended in Dec. 2023 was 12.82%.

Choice Hotels International ROCE % Historical Data

The historical data trend for Choice Hotels International's ROCE % 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.

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Choice Hotels International ROCE % Chart

Choice Hotels International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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34.03

8.19

32.57

32.66

25.30

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
ROCE %	Get a 7-Day Free Trial															18.44	19.08	29.44	31.13	12.82

Choice Hotels International ROCE % Calculation

Choice Hotels International's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	367.475	/	( ( (1984.453 - 411.488)	+	(2196.031 - 864.447) )	/ 2 )
	=	367.475	/	( (1572.965	+	1331.584)	/ 2 )
	=	367.475	/	1452.2745
	=	25.30 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	194.196	/	( ( (2091.606 - 392.597)	+	(2196.031 - 864.447) )	/ 2 )
	=	194.196	/	( ( 1699.009	+	1331.584 )	/ 2 )
	=	194.196	/	1515.2965
	=	12.82 %

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

Choice Hotels International (FRA:CZH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Choice Hotels International ROCE % Related Terms

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Choice Hotels International (FRA:CZH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Choice Hotels International Inc (FRA:CZH) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CHH:USA

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.

Choice Hotels International (FRA:CZH) Headlines

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