GURUFOCUS.COM » STOCK LIST » USA » NYSE » Choice Hotels International Inc (NYSE:CHH) » Definitions » Financial Strength
Switch to:

Choice Hotels International Financial Strength

: 6 (As of Jun. 2022)
View and export this data going back to 1997. Start your Free Trial

Choice Hotels International has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Choice Hotels International's Interest Coverage for the quarter that ended in Jun. 2022 was 13.69. Choice Hotels International's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.74. As of today, Choice Hotels International's Altman Z-Score is 4.98.


Competitive Comparison

For the Lodging subindustry, Choice Hotels International's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Choice Hotels International's Financial Strength distribution charts can be found below:

* The bar in red indicates where Choice Hotels International's Financial Strength falls into.



Choice Hotels International Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Choice Hotels International's Interest Expense for the months ended in Jun. 2022 was $-11 Mil. Its Operating Income for the months ended in Jun. 2022 was $154 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $875 Mil.

Choice Hotels International's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*154.069/-11.252
=13.69

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Choice Hotels International's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(216.571 + 875.084) / 1471.896
=0.74

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Choice Hotels International has a Z-score of 4.98, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.98 is strong.

* 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  (NYSE:CHH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Choice Hotels International has the Financial Strength Rank of 6.


Choice Hotels International Financial Strength Related Terms

Thank you for viewing the detailed overview of Choice Hotels International's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Choice Hotels International Business Description

Choice Hotels International logo
Traded in Other Exchanges
Address
1 Choice Hotels Circle, Suite 400, Rockville, MD, USA, 20850
As of Dec. 31, 2021, Choice Hotels operated 579,746 rooms across 13 brands addressing the economy and midscale segments. Comfort Inn and Comfort Suites are the largest brands (29% of the company's total domestic rooms), while Ascend and Cambria (7% of total domestic rooms) are newer lifestyle and select-service brands experiencing strong demand prior to COVID-19. Choice added its 13th brand with the launch of extended-stay brand Everhome in January 2020. Franchises are 99% of total revenue, and the United States represents 79% of total rooms.
Executives
Ramirez Sanchez Raul officer: Chief Strat & Intl Op Officer 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Vieira Donna F director 300 CONTINENTAL DRIVE NEWARK DE 19713
Redmond Elizabeth A officer: Principal Accounting Officer 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Shreve Christine A 10 percent owner 8171 MAPLE LAWN BLVD SUITE 375 FULTON MD 20759
Bainum Brian director 8171 MAPLE LAWN BLVD, SUITE 375 FULTON MD 20759
Maureen Sullivan director 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Mcdowell Robert J officer: Chief Commercial Officer 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Bonds John officer: Senior Vice President 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Dragisich Dominic officer: Chief Financial Officer 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Landsman Liza director 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Koch Monte Jm director C/O AUCTION.COM 1 MAUCHLY IRVINE CA 92618
Alexander Stiles Barbara director 299 PARK AVENUE 36TH FLOOR NEW YORK NY 10171-0026
Tague John P director
Wu Simone officer: Senior Vice President 1 CHOICE HOTELS CIRCLE ROCKVILLE MD 20850
Jaritz Alexandra officer: Senior Vice President 10750 COLUMBIA PIKE SILVER SPRING MD 20901

Choice Hotels International Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)