Choice Hotels International Inc (CHH)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 339,086 296,530 347,922 761,661 432,914
Total current liabilities US$ in thousands 462,721 942,690 435,898 570,295 255,847
Current ratio 0.73 0.31 0.80 1.34 1.69

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $339,086K ÷ $462,721K
= 0.73

Choice Hotels International Inc's current ratio has experienced a declining trend over the years, from 1.69 on December 31, 2020, to 0.73 on December 31, 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 1 suggests that the company may have difficulty covering its current liabilities with its current assets, raising concerns about liquidity and financial health. It is important for the company to closely monitor and address this downward trend in order to ensure its ability to meet its short-term obligations and maintain financial stability.