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.