Wyndham Hotels & Resorts Inc (WH)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,223,000 | 4,033,000 | 4,123,000 | 4,269,000 | 4,644,000 |
| Operating ROA | 11.72% | 12.47% | 13.53% | 10.45% | -0.99% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $495,000K ÷ $4,223,000K
= 11.72%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income relative to its total assets. In the case of Wyndham Hotels & Resorts Inc, the Operating ROA has shown significant improvement over the years.
As of December 31, 2020, the Operating ROA was negative at -0.99%, indicating that the company was not effectively utilizing its assets to generate operating income. However, this trend reversed in the following years, with the ratio increasing to 10.45% by December 31, 2021, reflecting a substantial improvement in the company's operational efficiency and profitability.
The positive momentum continued into the subsequent years, with Operating ROA reaching 13.53% by December 31, 2022, 12.47% by December 31, 2023, and 11.72% by December 31, 2024. These increasing values suggest that Wyndham Hotels & Resorts Inc has been able to enhance its operational performance and generate higher levels of operating income relative to its total asset base.
Overall, the trend in Operating ROA for Wyndham Hotels & Resorts Inc demonstrates a positive trajectory, indicating improved asset utilization and operational effectiveness, which bodes well for the company's financial health and business sustainability.
Peer comparison
Dec 31, 2024