Wyndham Hotels & Resorts Inc (WH)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 503,000 | 558,000 | 446,000 | -46,000 | 307,000 |
| Total assets | US$ in thousands | 4,033,000 | 4,123,000 | 4,269,000 | 4,644,000 | 4,533,000 |
| Operating ROA | 12.47% | 13.53% | 10.45% | -0.99% | 6.77% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $503,000K ÷ $4,033,000K
= 12.47%
Operating return on assets (Operating ROA) measures a company's ability to generate operating profits from its assets. For Wyndham Hotels & Resorts Inc, we observe a positive trend in the operating ROA over the past five years. In 2023, the company's operating ROA stands at 12.77%, slightly higher than the previous year's figure of 12.71%. This indicates that the company is efficiently utilizing its assets to generate operating income.
Comparing to 2021, where the operating ROA was 10.66%, there has been a notable increase in 2022 and 2023, suggesting improved operational efficiency. The significant rise from 4.48% in 2020 to 10.24% in 2019 reflects a substantial improvement in asset utilization over that period.
Overall, Wyndham Hotels & Resorts Inc's operating ROA has shown a positive trajectory, demonstrating the company's effectiveness in generating operating income relative to its asset base.
Peer comparison
Dec 31, 2023