Wyndham Hotels & Resorts Inc (WH)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 495,000 470,000 462,000 440,000 503,000 492,000 489,000 511,000 558,000 553,000 554,000 542,000 445,000 378,000 288,000 -39,000 -46,000 36,000 56,000 312,000
Total assets US$ in thousands 4,223,000 4,154,000 4,151,000 4,064,000 4,033,000 4,100,000 4,056,000 4,084,000 4,123,000 4,210,000 4,250,000 4,292,000 4,269,000 4,310,000 4,241,000 4,640,000 4,644,000 4,894,000 4,848,000 5,158,000
Operating ROA 11.72% 11.31% 11.13% 10.83% 12.47% 12.00% 12.06% 12.51% 13.53% 13.14% 13.04% 12.63% 10.42% 8.77% 6.79% -0.84% -0.99% 0.74% 1.16% 6.05%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $495,000K ÷ $4,223,000K
= 11.72%

Wyndham Hotels & Resorts Inc's operating return on assets (operating ROA) has demonstrated fluctuations over the periods mentioned in the data. The trend shows a decline from March 31, 2020, where the operating ROA was 6.05%, to December 31, 2020, where it dropped to -0.99%. However, there has been a consistent improvement in the operating ROA from June 30, 2021, onwards, reaching a peak of 13.53% by December 31, 2022.

The improvement in operating ROA from June 30, 2021, indicates the company's ability to generate higher operating earnings relative to its assets. This positive trend continued until March 31, 2024, where the operating ROA stood at 10.83% - indicating effective asset utilization and operational performance. The slight decrease in the next quarters to December 31, 2024, with an operating ROA of 11.72%, suggests a stable performance level.

Overall, Wyndham Hotels & Resorts Inc's operating ROA trend reflects periods of both growth and contraction, with a notable positive trajectory from mid-2021 through 2022 showcasing improved operational efficiency and profitability.