Wyndham Hotels & Resorts Inc (WH)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 289,000 | 289,000 | 355,000 | 244,000 | -132,000 |
| Total stockholders’ equity | US$ in thousands | 650,000 | 746,000 | 962,000 | 1,089,000 | 963,000 |
| ROE | 44.46% | 38.74% | 36.90% | 22.41% | -13.71% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $289,000K ÷ $650,000K
= 44.46%
The return on equity (ROE) of Wyndham Hotels & Resorts Inc has fluctuated significantly over the years based on the provided data.
- As of December 31, 2020, the ROE was negative at -13.71%, indicating that the company's net income was not generating a satisfactory return in relation to the shareholders' equity.
- However, by December 31, 2021, the ROE had improved to 22.41%, indicating a turnaround in the company's profitability and efficiency in using equity to generate earnings.
- The ROE continued to increase, reaching 36.90% by the end of 2022, showing a further enhancement in the company's ability to generate profit from the shareholders' equity.
- By December 31, 2023, the ROE stood at an even higher level of 38.74%, indicating sustained profitability and efficient use of equity.
- Finally, by December 31, 2024, the ROE peaked at 44.46%, reflecting a significant improvement in the company's ability to generate profit for its equity holders.
Overall, the trend in Wyndham Hotels & Resorts Inc's ROE shows a remarkable improvement over the years, with the company effectively leveraging its equity to generate higher returns for its shareholders.
Peer comparison
Dec 31, 2024