Wyndham Hotels & Resorts Inc (WH)

Net profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 289,000 253,000 254,000 238,000 289,000 296,000 294,000 316,000 355,000 348,000 350,000 326,000 244,000 188,000 112,000 -130,000 -132,000 -61,000 -66,000 134,000
Revenue (ttm) US$ in thousands 1,381,000 1,434,000 1,413,000 1,384,000 1,398,000 1,397,000 1,408,000 1,437,000 1,497,000 1,584,000 1,639,000 1,641,000 1,565,000 1,461,000 1,328,000 1,192,000 1,302,000 1,491,000 1,718,000 1,995,000
Net profit margin 20.93% 17.64% 17.98% 17.20% 20.67% 21.19% 20.88% 21.99% 23.71% 21.97% 21.35% 19.87% 15.59% 12.87% 8.43% -10.91% -10.14% -4.09% -3.84% 6.72%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $289,000K ÷ $1,381,000K
= 20.93%

Wyndham Hotels & Resorts Inc experienced fluctuations in its net profit margin over the period from March 31, 2020 to December 31, 2024. The net profit margin reflects the company's profitability by indicating the percentage of revenue that translates into net income after accounting for all expenses.

The net profit margin started at 6.72% in March 2020, indicating that Wyndham Hotels & Resorts Inc was able to convert 6.72% of its revenue into net income. However, in the subsequent quarters of June 2020, September 2020, and December 2020, the net profit margin turned negative, reaching its lowest point at -10.14% in December 2020, implying the company incurred losses.

The trend reversed in March 2021, with a further improvement in the net profit margin, which reached positive values. From that point on, the net profit margin showed a consistent upward trajectory, reaching its peak at 23.71% in December 2022. This significant improvement suggests that Wyndham Hotels & Resorts Inc effectively managed its expenses and increased its profitability.

Subsequently, the net profit margin fluctuated between 17.20% and 21.97% from March 2023 to September 2024, indicating that the company maintained a relatively stable level of profitability during this period.

Overall, the increasing trend in the net profit margin from March 2021 to December 2022 reflects Wyndham Hotels & Resorts Inc's efforts to enhance its operational efficiency and bottom-line performance. This positive trend indicates the company's ability to generate higher profits relative to its revenue, which can be viewed favorably by investors and stakeholders.