Choice Hotels International Inc (CHH)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 33,766 | 31,569 | 34,407 | 31,810 |
| Short-term investments | US$ in thousands | — | -55,081 | -44,946 | -33,216 | — | — | — | — | — | 42,961 | 42,793 | — | 29,104 | 26,454 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 325,888 | 316,304 | 321,008 | 303,871 |
| Cash ratio | 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 | 0.10 | 0.10 | 0.11 | 0.10 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,754K
+ $—K)
÷ $942,690K
= 0.03
The cash ratio of Choice Hotels International Inc has shown fluctuating trends over the past few quarters. A cash ratio below 1 indicates that the company may not have enough liquid assets to cover its current liabilities.
In the latest quarter (Dec 31, 2023), the cash ratio of 0.03 indicates that the company has only 3 cents in cash and cash equivalents for every dollar of current liabilities. This indicates a weak liquidity position.
The significant negative cash ratios in the preceding quarters (Sep 30, 2023, Jun 30, 2023) are concerning, as they suggest the company had negative cash balances relative to its current liabilities during those periods.
The cash ratio improved in earlier quarters such as Jun 30, 2022, and Mar 31, 2022, where the ratio was well above 1, indicating strong liquidity and the ability to cover short-term obligations comfortably with cash on hand.
Overall, it is crucial for Choice Hotels International Inc to closely monitor its cash position and liquidity management to ensure it can meet its short-term financial obligations in a sustainable manner.
Peer comparison
Dec 31, 2023