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Choice Hotels International has a quick ratio of 0.95. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Choice Hotels International's Quick Ratio or its related term are showing as below:
FRA:CZH'
s Quick 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 Quick Ratio was 2.40. The lowest was 0.31. And the median was 0.98.
FRA:CZH's Quick Ratio is ranked worse than 57.8% of 853
companies
in the Travel & Leisure industry
Industry Median: 1.15
vs FRA:CZH: 0.95
Choice Hotels International (FRA:CZH) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Choice Hotels International Quick Ratio Related Terms
Choice Hotels International Quick 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.
For the Lodging subindustry, Choice Hotels International's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Choice Hotels International's Quick Ratio falls into.
Choice Hotels International Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* 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 Quick Ratio of 0.95 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Choice Hotels International and its competitors. This is near median its historical median of 0.98. Over the past decade, Choice Hotels International's Quick Ratio has ranged from 0.31 to 2.40. According to the industry distribution chart, Choice Hotels International ranks #493 out of 853 companies in the Travel & Leisure industry, placing it in the top 57.8%.
Is Choice Hotels International's Quick Ratio too high?
Choice Hotels International's current Quick 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 Quick Ratio is 1.15. Choice Hotels International's value of 0.95 is 17.4% below this industry median. Based on the distribution chart, Choice Hotels International ranks #493 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 Quick Ratio compare to WH and CVEO?
According to the Travel & Leisure industry distribution chart, Choice Hotels International ranks #493 out of 853 companies for Quick Ratio. This places Choice Hotels International in the lower half of its industry. The industry median Quick Ratio is 1.15. Choice Hotels International's value of 0.95 is 17.4% below this benchmark. Historically, Choice Hotels International's own Quick 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 1.15, 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 Quick Ratio for a Travel & Leisure company?
The median Quick Ratio among Travel & Leisure companies is 1.15, based on 853 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Choice Hotels International's current Quick Ratio of 0.95 is 17.4% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Choice Hotels International and its competitors. For the Travel & Leisure industry, the median Quick Ratio is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choice Hotels International's current Quick 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 Quick 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 Quick Ratio is 0.95, which is near median its 10-year median of 0.98 and 17.4% below the Travel & Leisure industry median of 1.15. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Choice Hotels International (FRA:CZH), the current Quick 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:
Quick 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: 17.4% below the Travel & Leisure median (#493 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
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