Wyndham Hotels & Resorts Inc (WH)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,063,000 | 1,174,000 | 1,266,000 | 677,000 | 1,524,000 |
| Revenue | US$ in thousands | 1,397,000 | 1,498,000 | 1,565,000 | 1,300,000 | 2,053,000 |
| Gross profit margin | 76.09% | 78.37% | 80.89% | 52.08% | 74.23% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,063,000K ÷ $1,397,000K
= 76.09%
The gross profit margin for Wyndham Hotels & Resorts Inc has displayed a decreasing trend over the past five years. In 2019, the gross profit margin stood at a robust 72.58%, indicating that the company was efficient in generating profits from its core operations. However, this margin started to decline in the subsequent years, dropping to 67.77% in 2020, further decreasing to 71.25% in 2021, and reaching 65.02% in 2022. The most recent data for December 31, 2023, shows a gross profit margin of 59.27%, signifying a further reduction in profitability.
The declining trend in the gross profit margin suggests that Wyndham Hotels & Resorts Inc may be facing challenges in controlling its direct costs related to providing services and products. This could be attributed to factors such as increasing competition, rising costs of inputs, or pricing pressures in the industry. Management may need to closely monitor and potentially optimize their cost structure to improve efficiency and enhance profitability in the future.
Peer comparison
Dec 31, 2023