Choice Hotels International Inc (CHH)

Debt-to-capital 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 stockholders’ equity US$ in thousands 35,598 72,413 54,691 47,008 154,660 284,511 416,725 314,645 265,882 212,146 104,933 19,235 -5,752 -21,404 -42,752 -43,854 -23,511 -56,735 -122,660 -185,477
Debt-to-capital ratio 0.97 0.95 0.96 0.97 0.89 0.80 0.67 0.73 0.76 0.80 0.00 0.00 1.01 1.02 1.04 1.04 1.03 1.07 1.19 1.30

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,068,750K ÷ ($1,068,750K + $35,598K)
= 0.97

Choice Hotels International Inc's debt-to-capital ratio has been fluctuating over the past few quarters. The ratio reached its lowest point in June 2022 at 0.67, indicating a lower level of debt relative to the company's capital structure. However, there was a significant increase in the ratio in the following quarters, peaking at 1.30 in March 2019, which suggests a higher proportion of debt compared to capital.

It is worth noting that in the first two quarters of 2021, the debt-to-capital ratio was reported as 0.00, which could be attributed to temporary factors or accounting adjustments during that period. Furthermore, there was a consistent increase in the ratio from 2020 to 2021, indicating a rising reliance on debt in the company's capital structure.

Overall, the fluctuating trend in Choice Hotels International Inc's debt-to-capital ratio suggests varying degrees of leverage and financial risk over the analyzed period. Investors and stakeholders may want to closely monitor the company's debt management and capital structure decisions in light of these variations.