Choice Hotels International Inc key statistics and ratios

In fiscal 2025, Choice Hotels International Inc had an operating margin of 28.1%, debt equal to 1051.8% of equity and a current ratio of 0.87. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Choice Hotels International Inc: financial ratios, annual
Fiscal year	2009Dec 2009	2010Dec 2010	2011Dec 2011	2012Dec 2012	2013Dec 2013	2014Dec 2014	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025	LTMSept 2026
Operating margin	26.2%	27.0%	26.9%	27.9%	27.1%	28.3%	26.2%	23.2%	30.8%	30.6%	28.6%	15.7%	40.1%	34.1%	24.3%	29.3%	28.1%	22.8%
Net margin	17.4%	18.0%	17.3%	17.6%	15.7%	16.2%	14.9%	13.2%	13.0%	20.8%	20.0%	9.7%	27.0%	23.7%	16.7%	18.9%	23.2%	12.7%
Free-cash-flow margin	17.9%	20.2%	18.8%	19.4%	16.6%	22.0%	16.0%	15.7%	24.9%	18.7%	19.1%	9.9%	28.9%	24.5%	16.1%	17.7%	14.5%	10.4%
Return on equity	—	—	—	—	—	—	—	—	—	—	—	—	—	158.0%	—	—	—	131.8%
Return on assets	28.9%	28.6%	25.2%	24.3%	21.2%	20.9%	18.9%	13.1%	12.9%	20.3%	17.7%	5.1%	16.4%	16.5%	11.5%	12.2%	13.6%	6.8%
Asset turnover	1.66	1.59	1.46	1.39	1.35	1.29	1.27	0.99	0.99	0.98	0.88	0.52	0.61	0.70	0.69	0.64	0.59	0.54
Current ratio	0.97	0.99	1.06	1.61	1.76	1.63	1.49	1.31	1.41	0.77	0.73	1.69	1.34	0.80	0.31	0.73	0.87	1.26
Debt to equity	—	—	—	—	—	—	—	—	—	—	—	—	398.9%	778.2%	>999%	—	>999%	>999%
Interest cover (operating income ÷ interest)	33.5x	24.1x	13.3x	7.1x	4.6x	5.2x	5.3x	4.2x	6.4x	6.9x	6.8x	2.5x	9.2x	10.9x	5.9x	5.3x	4.9x	3.8x
Effective tax rate	34.8%	32.1%	30.2%	28.5%	28.6%	30.1%	30.4%	28.0%	50.9%	20.8%	17.4%	−42.2%	23.3%	24.0%	23.3%	24.3%	19.0%	23.3%
SG&A as % of revenue	17.6%	15.9%	16.6%	14.7%	15.4%	16.0%	15.6%	19.2%	17.6%	16.3%	15.2%	19.2%	13.6%	12.0%	20.3%	19.7%	20.6%	20.9%
Capital spending as % of revenue	2.0%	4.1%	1.7%	2.2%	4.6%	2.8%	3.2%	3.1%	2.5%	4.6%	5.1%	4.3%	6.9%	1.7%	3.1%	2.5%	2.4%	2.3%
Free cash flow ÷ net income	102.9%	112.2%	108.4%	110.7%	106.0%	135.3%	107.3%	118.9%	191.2%	90.2%	95.7%	101.4%	107.1%	103.2%	96.3%	93.5%	62.6%	82.4%
Dividends ÷ net income	45.1%	40.8%	39.4%	537.8%	28.8%	35.3%	35.3%	43.3%	39.8%	22.5%	21.6%	33.5%	8.7%	15.8%	21.8%	18.5%	14.5%	25.5%
Dividends and buybacks ÷ free cash flow	102.3%	45.6%	80.8%	502.4%	30.5%	72.9%	86.0%	64.7%	25.0%	101.1%	46.3%	105.6%	12.4%	142.1%	168.5%	155.6%	82.8%	143.6%

US$ thousands unless shown otherwise. Fiscal quarters.

Choice Hotels International Inc: financial ratios, quarterly
Quarter	2024 Q4Dec 2024	2025 Q1Mar 2025	2025 Q2Jun 2025	2025 Q3Sept 2025	2025 Q4Dec 2025	2026 Q1Mar 2026	2026 Q2Jun 2026	2026 Q3Sept 2026
Operating margin	30.6%	24.0%	29.2%	31.8%	26.0%	17.6%	23.6%	23.2%
Net margin	19.4%	13.4%	19.2%	40.2%	16.3%	6.0%	14.6%	12.6%
Free-cash-flow margin	19.9%	3.0%	20.6%	13.4%	18.9%	−9.8%	18.8%	10.2%
Current ratio	0.73	0.84	0.89	0.96	0.87	0.95	0.93	1.26
Debt to equity	—	—	—	>999%	>999%	>999%	>999%	>999%
SG&A as % of revenue	21.1%	22.3%	20.9%	17.8%	22.0%	22.9%	21.8%	17.7%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 7 checks passed · September 30, 2026

What it owns · $3.1bn

Short-term assets $576mLonger-term assets $2.6bn

What it owes, and who funded it · $3.1bn

Short-term liabilities $458mLonger-term liabilities $2.5bnShareholders' equity $132m

Short-term assets cover short-term liabilities $576m of assets due within a year against $458m of liabilities due within a year.
Short-term assets cover long-term liabilities $576m short-term assets against $2.5bn of longer-dated liabilities.
More cash than debt $171m of cash against $2.2bn of debt.
Debt below 40% of shareholders' equity Debt is 1652% of equity.
Debt burden no higher than five years ago Debt to equity moved from 268% to 1652% over five years.
A year's operating cash flow covers at least 20% of debt $208m of operating cash flow against $2.2bn of debt.
Operating profit covers interest at least five times over Operating income of $372m against $97m of interest.

From Choice Hotels International Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

99 /100

Strong moat

How hard Choice Hotels International's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 20 / 20

Net income has been a median 13.0% of total assets over 10 years.
Durability 19 / 20

Operating margin has been a median 28.4%; its worst year was 20.5%.
Cash conversion 20 / 20

Free cash flow was positive in 10 of 10 years, at a median 20.0% of revenue.
Discipline 20 / 20

The diluted share count fell 18.2% over five years; stock-based pay has been a median 2.3% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

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Figures from Choice Hotels International Inc's SEC filings (10-K and 10-Q), retrieved November 3, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Choice Hotels International Inc.