Choice Hotels International Inc (CHH)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,394,800	2,102,180	1,931,820	1,587,330	1,386,670
Total stockholders’ equity	US$ in thousands	35,598	154,660	265,882	-5,752	-23,511
Financial leverage ratio		67.27	13.59	7.27	—	—

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,394,800K ÷ $35,598K
= 67.27

Choice Hotels International Inc's financial leverage ratio has experienced a significant increase over the years, reaching 67.27% at the end of 2023 from 13.59% in 2022 and 7.27% in 2021. This suggests that the company has been relying more on debt to finance its operations and investments. The sharp increase in the financial leverage ratio may indicate a possible shift in the company's capital structure towards a higher level of debt, which could pose risks in terms of financial stability and solvency. Further analysis of the company's debt levels and ability to service its debt obligations would be necessary to assess the implications of this trend.