Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Choice Hotels International's annualizedNet Income for the quarter that ended in Dec. 2023 was $116 Mil. Choice Hotels International's average total tangible assets for the quarter that ended in Dec. 2023 was $1,297 Mil. Therefore, Choice Hotels International's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2023 was 8.93%.
The historical rank and industry rank for Choice Hotels International's Return-on-Tangible-Asset or its related term are showing as below:
CHH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.31 Med: 21.95 Max: 28.62
Current: 21.41
During the past 13 years, Choice Hotels International's highest Return-on-Tangible-Asset was 28.62%. The lowest was 7.31%. And the median was 21.95%.
CHH's Return-on-Tangible-Asset is ranked better than 94.95% of 831
companies
in the Travel & Leisure industry
Industry Median: 2.56
vs CHH: 21.41
Choice Hotels International Return-on-Tangible-Asset Historical Data
The historical data trend for Choice Hotels International's Return-on-Tangible-Asset 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.
For the Lodging subindustry, Choice Hotels International's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's Return-on-Tangible-Asset falls into.
Choice Hotels International Return-on-Tangible-Asset Calculation
Choice Hotels International's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
Choice Hotels International (NYSE:CHH) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Choice Hotels International Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Choice Hotels International's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Choice Hotels International (Choice Hotels International) Business Description
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.
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