Choice Hotels International Inc (CHH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,177 | 58,565 | 60,409 | 42,111 | 26,754 | 36,432 | 36,167 | 31,679 | 41,566 | 52,541 | 607,185 | 527,209 | 511,605 | 415,116 | 307,975 | 222,961 | 234,779 | 191,967 | 314,139 | 321,954 |
| Short-term investments | US$ in thousands | — | — | 90,446 | — | — | -55,081 | -44,946 | -33,216 | — | — | — | — | — | 42,961 | 42,793 | — | 29,104 | 26,454 | — | — |
| Total current liabilities | US$ in thousands | 462,721 | 478,786 | 452,090 | 919,512 | 942,690 | 418,994 | 406,686 | 369,574 | 435,898 | 426,383 | 582,351 | 563,513 | 570,295 | 590,594 | 315,975 | 243,800 | 255,847 | 252,420 | 218,737 | 255,420 |
| Cash ratio | 0.09 | 0.12 | 0.33 | 0.05 | 0.03 | -0.04 | -0.02 | -0.00 | 0.10 | 0.12 | 1.04 | 0.94 | 0.90 | 0.78 | 1.11 | 0.91 | 1.03 | 0.87 | 1.44 | 1.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,177K
+ $—K)
÷ $462,721K
= 0.09
The cash ratio of Choice Hotels International Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, ranged from a high of 1.44 in June 30, 2020, to a low of -0.04 in September 30, 2023.
Overall, the company maintained a generally healthy cash ratio above 1 for most of the period, indicating a strong liquidity position. However, there were instances of the ratio dropping below 1, such as in September 30, 2021, and September 30, 2022, signaling potential challenges in meeting short-term obligations with available cash.
It is noteworthy that the cash ratio improved in the later periods, with values above 0.9 recorded in the last three quarters of 2024. This positive trend suggests that Choice Hotels International Inc managed its cash resources more effectively in those quarters, enhancing its ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2024