Choice Hotels International Inc (CHH)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-45,271	-96,152	-146,779	6,727	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
Debt-to-capital ratio		—	—	—	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 has shown a consistent improvement over the past few years. From March 31, 2020, where the ratio was not available, to December 31, 2024, the company has managed to maintain a debt-to-capital ratio of 0.00, indicating that the company has either reduced its debt levels or increased its capital base.

A debt-to-capital ratio of 0.00 signifies that the company has no debt relative to its capital structure. This can be viewed positively by investors and creditors as it indicates a lower financial risk and greater financial stability. It suggests that the company is relying more on equity financing rather than debt, which could lead to lower interest expenses and improved financial flexibility.

Overall, Choice Hotels International Inc's consistent debt-to-capital ratio of 0.00 reflects a prudent debt management strategy and a strong financial position, indicating a potentially healthy and stable financial performance in the future.