Wyndham Hotels & Resorts Inc (WH)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 289,000 | 253,000 | 254,000 | 238,000 | 289,000 | 296,000 | 294,000 | 316,000 | 355,000 | 348,000 | 350,000 | 326,000 | 244,000 | 188,000 | 112,000 | -130,000 | -132,000 | -61,000 | -66,000 | 134,000 |
| Total stockholders’ equity | US$ in thousands | 650,000 | 583,000 | 623,000 | 674,000 | 746,000 | 856,000 | 880,000 | 936,000 | 962,000 | 1,056,000 | 1,096,000 | 1,159,000 | 1,089,000 | 1,123,000 | 1,060,000 | 991,000 | 963,000 | 963,000 | 933,000 | 1,112,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $289,000K ÷ $650,000K
= 44.46%
The return on equity (ROE) of Wyndham Hotels & Resorts Inc has shown significant fluctuations over the analyzed periods. Starting at 12.05% in March 2020, the ROE turned negative in the subsequent quarters, reaching a low point of -13.71% by December 2020. However, there was a turnaround in the second half of 2021, with ROE values starting to climb. By December 2024, the ROE had increased to 44.46%, representing a substantial improvement from the earlier negative values.
The positive trend in ROE from the second half of 2021 through 2024 indicates a favorable financial performance in terms of generating profits from shareholders' equity. The consistent increase in ROE demonstrates the company's ability to efficiently utilize investor funds to generate returns. This improvement in ROE reflects positively on Wyndham Hotels & Resorts Inc's financial management and operational efficiency.
Overall, the upward trend in ROE over the analyzed periods suggests that Wyndham Hotels & Resorts Inc has been increasingly successful in generating profit relative to its shareholders' equity. This trend is a positive indicator of the company's financial health and performance.
Peer comparison
Dec 31, 2024