Wyndham Hotels & Resorts Inc (WH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.99% | 76.09% | 78.37% | 80.89% | 52.08% |
| Operating profit margin | 35.16% | 36.01% | 37.25% | 28.50% | -3.54% |
| Pretax margin | 26.14% | 28.49% | 31.78% | 21.41% | -12.15% |
| Net profit margin | 20.53% | 20.69% | 23.70% | 15.59% | -10.15% |
Wyndham Hotels & Resorts Inc has shown a significant improvement in its profitability ratios over the past few years. The gross profit margin has steadily increased from 52.08% in 2020 to 75.99% in 2024, indicating the company's ability to efficiently generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a remarkable turnaround, shifting from a negative margin of -3.54% in 2020 to a healthier 35.16% in 2024. This indicates that Wyndham Hotels & Resorts Inc has been able to effectively manage its operating expenses and improve its operational efficiency.
The pretax margin has also demonstrated a positive trend, increasing from -12.15% in 2020 to 26.14% in 2024. This suggests that the company has been successful in enhancing its profitability before accounting for taxes, reflecting improvements in revenue generation and cost management.
Lastly, the net profit margin has shown consistent growth, rising from -10.15% in 2020 to 20.53% in 2024. This signifies that Wyndham Hotels & Resorts Inc has been able to translate its revenues into net income more effectively, reflecting the company's overall profitability and financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.72% | 12.47% | 13.53% | 10.45% | -0.99% |
| Return on assets (ROA) | 6.84% | 7.17% | 8.61% | 5.72% | -2.84% |
| Return on total capital | 15.80% | 16.97% | 18.30% | 13.49% | -1.29% |
| Return on equity (ROE) | 44.46% | 38.74% | 36.90% | 22.41% | -13.71% |
Wyndham Hotels & Resorts Inc has shown a consistent improvement in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has significantly increased from -0.99% in December 31, 2020, to 11.72% in December 31, 2024. This indicates that the company has been able to generate better operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has also improved from -2.84% in December 31, 2020, to 6.84% in December 31, 2024. This suggests that the company has become more efficient in generating profit from its total assets.
The Return on Total Capital has shown a substantial increase from -1.29% in December 31, 2020, to 15.80% in December 31, 2024. This indicates that the company has been able to generate higher returns on its total invested capital.
Lastly, the Return on Equity (ROE) has shown a significant improvement from -13.71% in December 31, 2020, to 44.46% in December 31, 2024. This signifies that the company has been successful in generating higher returns for its shareholders.
Overall, Wyndham Hotels & Resorts Inc's profitability ratios reflect a positive trend, showcasing the company's ability to utilize its assets and capital efficiently to generate returns for its stakeholders.