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The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Choice Hotels International's current ratio for the quarter that ended in Mar. 2026 was 0.95.
Choice Hotels International has a current ratio of 0.95. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Choice Hotels International has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Choice Hotels International's Current Ratio or its related term are showing as below:
FRA:CZH'
s Current Ratio Range Over the Past 10 Years
Min: 0.31 Med: 0.98 Max: 2.4
Current: 0.95
During the past 13 years, Choice Hotels International's highest Current Ratio was 2.40. The lowest was 0.31. And the median was 0.98.
FRA:CZH's Current Ratio is ranked worse than 66.59% of 853
companies
in the Travel & Leisure industry
Industry Median: 1.37
vs FRA:CZH: 0.95
Choice Hotels International (FRA:CZH) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Choice Hotels International Current Ratio Related Terms
Choice Hotels International Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CZH vs WH, CVEO, GHG: Current Ratio Comparison
For the Lodging subindustry, Choice Hotels International's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Choice Hotels International Current Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Current Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Choice Hotels International (FRA:CZH) has a Current Ratio of 0.95 as of Mar. 2026. This is near median its historical median of 0.98. Over the past decade, Choice Hotels International's Current Ratio has ranged from 0.31 to 2.40. According to the industry distribution chart, Choice Hotels International ranks #568 out of 853 companies in the Travel & Leisure industry, placing it in the top 66.6%.
Is Choice Hotels International's Current Ratio too high?
Choice Hotels International's current Current Ratio of 0.95 is near median its 10-year median of 0.98. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 2.40. The Travel & Leisure industry median Current Ratio is 1.37. Choice Hotels International's value of 0.95 is 30.7% below this industry median. Based on the distribution chart, Choice Hotels International ranks #568 out of 853 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Choice Hotels International has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Choice Hotels International's Current Ratio compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #568 out of 853 companies for Current Ratio. This places Choice Hotels International in the lower half of its industry. The industry median Current Ratio is 1.37. Choice Hotels International's value of 0.95 is 30.7% below this benchmark. Historically, Choice Hotels International's own Current Ratio has ranged from 0.31 to 2.40 over the past decade. While the company's 10-year median is 0.98 vs. the industry median of 1.37, Choice Hotels International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Travel & Leisure company?
The median Current Ratio among Travel & Leisure companies is 1.37, based on 853 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current Current Ratio of 0.95 is 30.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Travel & Leisure industry, the median Current Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current Current Ratio is 0.95, which is near median its own 10-year median of 0.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choice Hotels International stock overvalued right now?
Choice Hotels International (FRA:CZH) has a current Current Ratio of 0.95. The stock's GF Value™ is €113.84, compared to a current price of €92.50 — trading 18.7% below its estimated fair value. The current Current Ratio is 0.95, which is near median its 10-year median of 0.98 and 30.7% below the Travel & Leisure industry median of 1.37. Choice Hotels International's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current Current Ratio is 0.95 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Choice Hotels International (FRA:CZH) Overvalued in 2026?
Based on GuruFocus' analysis, Choice Hotels International stock appears to be undervalued.
The current stock price of €92.50 is trading 18.7% below its estimated GF Value™ of €113.84.
Key valuation signals for FRA:CZH:
Current Ratio: 0.95 (near median its 10-year median of 0.98)
GF Value™: €113.84 vs. price of €92.50 (18.7% below fair value)
Industry Position: 30.7% below the Travel & Leisure median (#568 of 853)
No single metric tells the full story. See the FRA:CZH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
At year-end 2025, Choice Hotels operated 657,000 rooms across the economy, midscale, upscale, and extended-stay segments. Comfort Inn and Comfort Suites are the largest brands (27% of the company's total rooms), while Ascend and Cambria (10%) are lifestyle and select-service brands, and WoodSpring (5%) is the company's largest extended-stay brand. Choice closed on its Radisson acquisition in August 2022, which added about 70,000 rooms. Franchises account for 100% of total revenue, and the United States represented 78% of total rooms in 2025.
85GF Score
Get the complete analysis for FRA:CZH
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