Choice Hotels International Inc (CHH)

Current 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
Total current assets	US$ in thousands	339,086	338,602	448,157	338,501	296,530	352,812	348,134	341,088	347,922	459,149	983,609	788,018	761,661	710,969	607,540	445,144	432,914	415,570	524,479	531,279
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
Current ratio		0.73	0.71	0.99	0.37	0.31	0.84	0.86	0.92	0.80	1.08	1.69	1.40	1.34	1.20	1.92	1.83	1.69	1.65	2.40	2.08

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 displayed a fluctuating trend over the data period from March 31, 2020, to December 31, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

Starting at 2.08 on March 31, 2020, the current ratio increased to its peak at 2.40 on June 30, 2020, indicating a strong ability to fulfill short-term liabilities. However, from there, the ratio showed a declining trend until December 31, 2021, reaching 1.34. This decrease could suggest potential liquidity challenges or an increase in short-term obligations relative to current assets during that period.

After December 31, 2021, the current ratio fluctuated within a range, with some improved ratios such as 1.92 on June 30, 2021, but also falling to as low as 0.31 on December 31, 2023. These lower ratios may indicate a weakened liquidity position, possibly caused by a significant increase in short-term obligations or a decrease in current assets during those periods.

As of June 30, 2024, the current ratio stood at 0.99, showing a slight improvement from the previous period but still implying the company may face challenges in meeting short-term obligations with its current assets. Overall, the analysis of Choice Hotels International Inc's current ratio suggests fluctuations in liquidity over the data period, indicating the need for careful monitoring of the company's short-term financial health.