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CHH (Choice Hotels International) Return-on-Tangible-Asset : 12.27% (As of Mar. 2025)


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What is Choice Hotels International Return-on-Tangible-Asset?

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 annualized Net Income for the quarter that ended in Mar. 2025 was $178 Mil. Choice Hotels International's average total tangible assets for the quarter that ended in Mar. 2025 was $1,451 Mil. Therefore, Choice Hotels International's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 was 12.27%.

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: 21.51   Max: 28.62
Current: 21.56

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 21.51%.

CHH's Return-on-Tangible-Asset is ranked better than
94.76% of 840 companies
in the Travel & Leisure industry
Industry Median: 2.25 vs CHH: 21.56

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.

* Premium members only.

Choice Hotels International Return-on-Tangible-Asset Chart

Choice Hotels International Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.31 22.36 25.53 20.64 21.48

Choice Hotels International Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.87 24.04 28.91 21.01 12.27

Competitive Comparison of Choice Hotels International's Return-on-Tangible-Asset

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's Return-on-Tangible-Asset Distribution in the Travel & Leisure Industry

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.


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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. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=299.665/( (1363.537+1426.327)/ 2 )
=299.665/1394.932
=21.48 %

Choice Hotels International's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=178.136/( (1426.327+1476.608)/ 2 )
=178.136/1451.4675
=12.27 %

* 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 (Mar. 2025) 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 company’s 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 company’s 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 Business Description

Traded in Other Exchanges
Address
915 Meeting Street, Suite 600, North Bethesda, MD, USA, 20850
As of Dec. 31, 2024, Choice Hotels operated 654,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (26% of the company's total domestic rooms), while Ascend and Cambria (10% of total domestic rooms) are newer lifestyle and select-service brands. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2024.
Executives
Ervin R Shames director 35 MOLLBROOK DR, WILTON CT 06897
Scott E Oaksmith officer: Controller 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Dominic Dragisich officer: Chief Financial Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Patrick Cimerola officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Patrick Pacious officer: Senior Vice President 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Robert J Mcdowell officer: Chief Commercial Officer 1 CHOICE HOTELS CIRCLE, ROCKVILLE MD 20850
Simone Wu officer: Senior Vice President 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
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