Choice Hotels International Inc (CHH)

Debt-to-assets 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
Long-term debt	US$ in thousands	1,068,750	1,391,270	1,384,290	1,374,810	1,200,550	1,155,140	844,729	844,426	844,123	843,820	—	—	1,058,740	1,058,310	1,232,140	1,208,940	844,102	875,843	784,280	804,730
Total assets	US$ in thousands	2,394,800	2,232,240	2,150,320	2,106,220	2,102,180	2,188,980	2,076,840	1,972,030	1,931,820	1,865,930	1,728,790	1,584,140	1,587,330	1,570,150	1,686,040	1,703,950	1,386,670	1,374,260	1,214,280	1,173,820
Debt-to-assets ratio		0.45	0.62	0.64	0.65	0.57	0.53	0.41	0.43	0.44	0.45	0.00	0.00	0.67	0.67	0.73	0.71	0.61	0.64	0.65	0.69

December 31, 2023 calculation

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

Choice Hotels International Inc's debt-to-assets ratio has displayed some fluctuations over the past few years. In the most recent period, as of December 31, 2023, the ratio stands at 0.45. This indicates that 45% of the company's assets are funded through debt.

The trend shows an increase in the debt-to-assets ratio from the beginning of 2022 through mid-2023, peaking at 0.73 in June 2020. However, the ratio has since declined, showing an improvement in the company's ability to finance its assets with debt more efficiently.

It is essential to note that a lower debt-to-assets ratio is generally considered favorable as it signifies a lower dependency on debt for funding assets. However, a ratio that is too low, such as the 0.00 ratios in the second half of 2021 and first quarter of 2022, may indicate underutilization of debt to maximize returns.

Overall, monitoring Choice Hotels International Inc's debt-to-assets ratio provides insight into the company's capital structure and financial risk management.