Choice Hotels International Inc (CHH)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,177K
+ $—K
+ $—K)
÷ $462,721K
= 0.09
Choice Hotels International Inc's quick ratio has fluctuated over the past few years, indicating varying levels of short-term liquidity. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
From March 31, 2020, to June 30, 2020, the quick ratio improved from 1.26 to 1.44, suggesting an increase in the availability of current assets to cover short-term liabilities. However, the ratio decreased significantly to 0.87 by September 30, 2020, indicating potential liquidity challenges.
The ratio slightly recovered by December 31, 2020, standing at 1.03, and fluctuated around this level until June 30, 2022. There was a notable drop in the quick ratio to 0.12 on September 30, 2022, signaling potential liquidity concerns or inefficient management of current assets.
The quick ratio improved to 0.33 by June 30, 2024, suggesting a better ability to meet short-term obligations with liquid assets. Overall, the trend in Choice Hotels International Inc's quick ratio shows some instability and calls for further investigation into the company's liquidity management strategies.
Peer comparison
Dec 31, 2024