Wyndham Hotels & Resorts Inc (WH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 76.09% | 78.37% | 80.89% | 52.08% | 74.23% |
| Operating profit margin | 36.01% | 37.25% | 28.50% | -3.54% | 14.95% |
| Pretax margin | 28.49% | 31.78% | 21.41% | -12.15% | 10.08% |
| Net profit margin | 20.69% | 23.70% | 15.59% | -10.15% | 7.65% |
Wyndham Hotels & Resorts Inc has demonstrated fluctuating profitability ratios in the recent years. The gross profit margin has shown a declining trend from 72.58% in 2019 to 59.27% in 2023, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also varied, with a peak of 36.86% in 2023. This ratio reflects the company's ability to generate profits from its core operations. The fluctuating trend suggests changes in operating efficiency and cost management.
The pretax margin has shown significant volatility, ranging from a negative value in 2020 to a high of 31.78% in 2022. This ratio indicates the percentage of revenue that translates into pre-tax profits and takes into account non-operating expenses. The negative pretax margin in 2020 is concerning and may be attributed to one-time charges or exceptional costs.
The net profit margin, which reflects the company's overall profitability after accounting for all expenses including taxes, has also displayed variability. The ratio increased from -10.15% in 2020 to 20.69% in 2023. The negative net profit margin in 2020 signifies the company's net losses during that period, followed by a significant recovery in subsequent years.
In conclusion, Wyndham Hotels & Resorts Inc's profitability ratios have experienced fluctuations in recent years, indicating changes in operational efficiency, cost management, and overall profitability. It is important for stakeholders to closely monitor these ratios to assess the company's financial performance and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.47% | 13.53% | 10.45% | -0.99% | 6.77% |
| Return on assets (ROA) | 7.17% | 8.61% | 5.72% | -2.84% | 3.46% |
| Return on total capital | 16.97% | 18.30% | 13.49% | -1.29% | 9.21% |
| Return on equity (ROE) | 38.74% | 36.90% | 22.41% | -13.71% | 12.95% |
Wyndham Hotels & Resorts Inc has showcased a consistent improvement in its profitability ratios over the years.
1. Operating return on assets (Operating ROA) has been fairly stable over the past five years, indicating that the company is efficiently generating operating profits from its assets. The highest operating ROA was in 2023 at 12.77%.
2. Return on assets (ROA) has shown an upward trend, reflecting the company's ability to generate profits from its total assets. The ROA increased from -2.84% in 2020 to 7.17% in 2023, demonstrating a significant improvement in asset utilization efficiency.
3. Return on total capital has consistently increased over the years, reaching 17.48% in 2023. This indicates that the company is effectively utilizing its total capital to generate returns for its stakeholders.
4. Return on equity (ROE) has exhibited substantial growth, with the highest ROE of 38.74% achieved in 2023. This suggests that the company is efficiently generating profits for its equity shareholders.
Overall, the profitability ratios of Wyndham Hotels & Resorts Inc reflect an improvement in operational efficiency and profitability over the past five years, signaling positive performance and effective management of resources.