Choice Hotels International Inc (CHH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | — | 67.27 | 13.59 | 7.27 | — |
Choice Hotels International Inc has consistently maintained a debt-to-assets ratio of 0.00 from 2020 to 2024, indicating that the company has not used debt to finance its assets during this period. The debt-to-capital ratio has been non-existent for 2020 and 2024, and also remained at 0.00 for 2021, 2022, and 2023, suggesting that the company has not relied on debt to fund its capital structure. The debt-to-equity ratio mirrored the other solvency ratios, showing values of 0.00 for the years 2021, 2022, and 2023, with no data available for 2020 and 2024.
However, the financial leverage ratio presents a different trend, starting at "—" for 2020 and 2024, denoting missing data, but experiencing an increase from 7.27 in 2021 to 67.27 in 2023, representing a significant rise in leverage during this period. Overall, based on the solvency ratios provided, Choice Hotels International Inc appears to have a solid financial position with minimal reliance on debt for funding its operations and investments.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 5.54 | 6.28 | -8.88 | -4.12 | -10.39 |
The interest coverage ratio for Choice Hotels International Inc has varied over the past five years. In December 2020 and December 2021, the company had negative interest coverage ratios of -10.39 and -4.12 respectively, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses during those years.
However, there was an improvement in the company's financial position in December 2023 and December 2024, with positive interest coverage ratios of 6.28 and 5.54 respectively. This suggests that the company's earnings were more than sufficient to cover its interest obligations during those years.
Overall, Choice Hotels International Inc experienced fluctuations in its interest coverage ratio over the period analyzed, showing a mix of challenging and improved financial performance in terms of meeting its interest payment obligations.