Choice Hotels International Inc (CHH)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -45,271 | 35,598 | 154,660 | 265,882 | -5,752 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | — |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-45,271K)
= —
Choice Hotels International Inc's debt-to-capital ratio indicates the proportion of the company's capital structure that is funded by debt. The data provided shows that as of December 31, 2020, and December 31, 2024, the ratio is not available (denoted by "—"), suggesting a lack of debt or capital information for those periods.
From the available information, we can see that as of December 31, 2021, December 31, 2022, and December 31, 2023, the debt-to-capital ratio is 0.00, indicating that the company has zero debt relative to its capital during those periods. A debt-to-capital ratio of 0.00 signifies that Choice Hotels International Inc is not reliant on debt financing to support its operations or investment activities, which may indicate stronger financial stability and lower financial risk.
It is important to consider that while a low debt-to-capital ratio can be favorable in terms of financial risk, it is essential to assess the company's overall financial health, liquidity position, and long-term growth prospects in conjunction with other financial metrics for a comprehensive evaluation.
Peer comparison
Dec 31, 2024