Choice Hotels International Inc (CHH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | — | — | — | — |
| Debt-to-equity 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 | — | — | — | — |
| Financial leverage ratio | — | — | — | 367.93 | 67.27 | 30.83 | 39.32 | 44.81 | 13.59 | 7.69 | 4.98 | 6.27 | 7.27 | 8.80 | 16.48 | 82.36 | — | — | — | — |
Choice Hotels International Inc's solvency ratios indicate a consistently strong financial position in terms of debt management. The Debt-to-assets ratio has remained at 0.00 across all periods, reflecting that the company has no debt in relation to its total assets.
The Debt-to-capital ratio was not available for the earlier periods but has been at 0.00 since March 31, 2021. This indicates that the company's debt is not a significant component of its capital structure, as it represents a low percentage of total capital.
Similarly, the Debt-to-equity ratio was not provided for the earlier periods but has been at 0.00 since March 31, 2021. This implies that the company's reliance on debt financing compared to equity is minimal.
The Financial leverage ratio, which was not available for the earlier periods, has shown a downward trend from 82.36 on March 31, 2021, to 67.27 on December 31, 2023. However, a significant spike to 367.93 on March 31, 2024, raises some concern about the company's leverage. The ratios throughout the periods indicate fluctuations but generally suggest that the company has managed its financial leverage effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.56 | 4.79 | 4.87 | 5.34 | 5.93 | 7.32 | 8.46 | 9.90 | 10.89 | 10.79 | 10.63 | 9.88 | 8.64 | 6.96 | 4.55 | 2.13 | 2.21 | 3.57 | 4.56 | 6.82 |
Choice Hotels International Inc's interest coverage ratio has shown a declining trend from March 31, 2020, where it stood at 6.82, to December 31, 2024, reaching a low of 4.79. A lower interest coverage ratio indicates the company may have difficulty meeting its interest obligations from its operating income. However, there has been an improvement in the ratio from the low point in December 31, 2024, gradually increasing to 5.56 by the end of that year. The ratio consistently increased in the following periods, with a notable improvement to 10.89 by December 31, 2022. From March 31, 2023, to June 30, 2024, the interest coverage ratio decreased but remained above the levels seen in the earlier periods. Overall, the interest coverage ratio has fluctuated over the analyzed period, reflecting varying levels of the company's ability to cover its interest expenses with its operating income.