Wyndham Hotels & Resorts Inc (WH)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 289,000 | 355,000 | 244,000 | -132,000 | 157,000 |
| Total stockholders’ equity | US$ in thousands | 746,000 | 962,000 | 1,089,000 | 963,000 | 1,212,000 |
| ROE | 38.74% | 36.90% | 22.41% | -13.71% | 12.95% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $289,000K ÷ $746,000K
= 38.74%
Wyndham Hotels & Resorts Inc has shown a consistent improvement in its return on equity (ROE) over the past five years. The ROE has increased from 12.95% in 2019 to 38.74% in 2023, indicating that the company has been generating stronger returns for its shareholders. This signifies that the company has efficiently utilized its equity to generate profits.
The significant increase in ROE from negative in 2020 to over 20% in 2021 further demonstrates the company's ability to rebound and improve its financial performance. The sharp improvement in 2023 reflects a continued positive trend in the company's profitability and efficiency in utilizing shareholder equity.
Overall, the increasing trend in ROE for Wyndham Hotels & Resorts Inc suggests strong financial health and effectiveness in generating returns for its shareholders. It indicates that the company's management has been successful in implementing strategies to enhance profitability and create value for its owners.
Peer comparison
Dec 31, 2023