Choice Hotels International Inc (CHH)

Current 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
Total current assets	US$ in thousands	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	236,589	260,264	276,864	250,671
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
Current ratio		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	0.73	0.82	0.86	0.82

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $296,530K ÷ $942,690K
= 0.31

The current ratio of Choice Hotels International Inc has fluctuated over the past few quarters. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

In the most recent quarter, as of December 31, 2023, the current ratio was 0.31, indicating that the company may have difficulty meeting its short-term financial obligations with its current assets alone. This low current ratio raises concerns about the company's liquidity and ability to cover its short-term debts.

Conversely, in previous quarters such as September 30, 2022, and March 31, 2020, the company had current ratios well above 1, indicating a healthier liquidity position and a stronger ability to meet short-term obligations. These higher ratios suggest that the company had more current assets relative to its current liabilities during those periods.

Overall, the fluctuating trend in Choice Hotels International Inc's current ratio reflects variations in the company's liquidity position over the analyzed periods. Analysts and stakeholders should keep an eye on the company's current ratio to assess its short-term financial health and ability to weather economic challenges.