Wyndham Hotels & Resorts Inc (WH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 75.52% | 75.38% | 74.95% | 74.86% | 75.97% | 76.45% | 76.78% | 77.45% | 78.22% | 81.31% | 81.64% | 81.41% | 80.83% | 79.81% | 77.86% | 56.71% | 58.99% | 64.59% | 68.86% | 81.65% |
| Operating profit margin | 35.84% | 32.78% | 32.70% | 31.79% | 35.98% | 35.22% | 34.73% | 35.56% | 37.27% | 34.91% | 33.80% | 33.03% | 28.43% | 25.87% | 21.69% | -3.27% | -3.53% | 2.41% | 3.26% | 15.64% |
| Pretax margin | 26.72% | 24.13% | 24.42% | 23.77% | 28.47% | 28.35% | 28.34% | 29.65% | 31.73% | 29.67% | 28.68% | 26.81% | 21.41% | 17.66% | 12.12% | -12.92% | -12.14% | -4.76% | -4.07% | 9.42% |
| 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% |
Based on the profitability ratios of Wyndham Hotels & Resorts Inc, the trend analysis reveals the following insights:
1. Gross Profit Margin:
- The gross profit margin has shown a slight decline from 81.65% on March 31, 2020, to around 75.52% on December 31, 2024. Despite fluctuations, the company has generally maintained a high gross profit margin, indicating efficient cost management and strong pricing strategies.
2. Operating Profit Margin:
- The operating profit margin experienced significant fluctuations, starting from 15.64% on March 31, 2020, dropping to -3.53% on December 31, 2020, before steadily increasing to 35.84% by December 31, 2024. This improvement suggests improved operational efficiency and cost controls over time.
3. Pretax Margin:
- The pretax margin also fluctuated over the period analyzed, with negative values in the first half of 2020 to positive values reaching 26.72% by December 31, 2024. The increasing trend reflects the company's ability to effectively manage expenses and generate higher pre-tax earnings.
4. Net Profit Margin:
- The net profit margin reflects the company's bottom line efficiency, showing a similar fluctuating pattern. Starting from negative values, it improved to 20.93% by December 31, 2024. This indicates that Wyndham Hotels & Resorts Inc has successfully controlled costs and improved profitability over the analyzed period.
Overall, the company has demonstrated a consistent focus on enhancing profitability through effective cost management, operational improvements, and revenue generation strategies, as evidenced by the positive trend in its profitability ratios over time.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.84% | 6.09% | 6.12% | 5.86% | 7.17% | 7.22% | 7.25% | 7.74% | 8.61% | 8.27% | 8.24% | 7.60% | 5.72% | 4.36% | 2.64% | -2.80% | -2.84% | -1.25% | -1.36% | 2.60% |
| Return on total capital | 15.80% | 15.21% | 15.05% | 14.99% | 16.97% | 16.21% | 16.54% | 16.89% | 18.30% | 17.58% | 17.39% | 16.18% | 13.46% | 11.21% | 8.57% | -1.09% | -1.29% | 0.95% | 0.87% | 7.29% |
| Return on equity (ROE) | 44.46% | 43.40% | 40.77% | 35.31% | 38.74% | 34.58% | 33.41% | 33.76% | 36.90% | 32.95% | 31.93% | 28.13% | 22.41% | 16.74% | 10.57% | -13.12% | -13.71% | -6.33% | -7.07% | 12.05% |
Wyndham Hotels & Resorts Inc's profitability ratios show a positive trend over the reporting periods.
1. Operating return on assets (Operating ROA) has been increasing steadily, reaching 13.53% by December 31, 2022. This indicates that the company is efficiently generating profits from its operating activities relative to its assets.
2. Return on assets (ROA) also depicts an upward trajectory, improving to 6.84% by December 31, 2024. This ratio signifies the company's ability to generate profits from its total assets.
3. Return on total capital displays a similar increasing pattern, with a value of 15.80% as of December 31, 2024. This ratio reflects the overall return the company is generating from both debt and equity capital.
4. Return on equity (ROE) demonstrates a significant rise, reaching 44.46% by December 31, 2024. This metric highlights the company's capability to generate a high return on the shareholders' equity investments.
Overall, the improvement in these profitability ratios indicates Wyndham Hotels & Resorts Inc's enhanced efficiency in utilizing its assets and capital to generate profits for its shareholders.