Wyndham Hotels & Resorts Inc (WH)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 495,000 503,000 558,000 446,000 -46,000
Revenue US$ in thousands 1,408,000 1,397,000 1,498,000 1,565,000 1,300,000
Operating profit margin 35.16% 36.01% 37.25% 28.50% -3.54%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $495,000K ÷ $1,408,000K
= 35.16%

Wyndham Hotels & Resorts Inc's operating profit margin has shown a significant improvement over the period from December 31, 2020, to December 31, 2024. The margin increased from a negative value of -3.54% in 2020 to 28.50% in 2021, indicating a strong turnaround in the company's operational efficiency and profitability.

Furthermore, the operating profit margin continued to expand, reaching 37.25% in 2022, 36.01% in 2023, and 35.16% in 2024. This consistent improvement suggests that Wyndham Hotels & Resorts Inc managed to effectively control its operating expenses relative to its revenue, enhancing its profitability over the years.

The steady growth in the operating profit margin reflects the company's ability to generate more profit from each dollar of sales, which is a positive indicator of its operational performance and management efficiency. Overall, the trend in the operating profit margin demonstrates Wyndham Hotels & Resorts Inc's successful efforts in driving profitability and creating value for its stakeholders.