Choice Hotels International Inc (CHH)

Debt-to-assets ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 1,068,750 1,200,550 844,123 1,058,740 844,102
Total assets US$ in thousands 2,394,800 2,102,180 1,931,820 1,587,330 1,386,670
Debt-to-assets ratio 0.45 0.57 0.44 0.67 0.61

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,068,750K ÷ $2,394,800K
= 0.45

The debt-to-assets ratio of Choice Hotels International Inc has shown some fluctuation over the past five years. In 2023, the ratio decreased to 0.45 from 0.57 in 2022, indicating a reduction in financial leverage and a stronger proportion of assets financed by equity rather than debt. This improved ratio suggests a healthier financial position with lower reliance on borrowed funds to finance the company's operations and investments. Comparing to the ratios in 2021, 2020, and 2019, it appears that the company has made progress in managing its debt levels. Overall, a declining trend in the debt-to-assets ratio is generally considered positive as it signifies improved financial stability and lower risk of default.