Choice Hotels International Inc (CHH)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,068,750 | 1,200,550 | 844,123 | 1,058,740 | 844,102 |
| Total stockholders’ equity | US$ in thousands | 35,598 | 154,660 | 265,882 | -5,752 | -23,511 |
| Debt-to-equity ratio | 30.02 | 7.76 | 3.17 | — | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,068,750K ÷ $35,598K
= 30.02
Choice Hotels International Inc's debt-to-equity ratio has been increasing over the past five years, indicating a growing reliance on debt financing relative to equity. In 2023, the ratio stands at 30.02, significantly higher than the previous years, where it was 7.76 in 2022 and 3.17 in 2021. The substantial increase in the debt-to-equity ratio suggests that the company may be taking on more debt to fund its operations, acquisitions, or investments. This heightened leverage could potentially lead to increased financial risk and interest expenses. Comparing the ratios to industry benchmarks and analyzing the trend over time will provide further insights into Choice Hotels International Inc's financial leverage strategy and risk management.
Peer comparison
Dec 31, 2023