Wyndham Hotels & Resorts Inc (WH)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 133,000 | 112,000 | 148,000 | 143,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,212,000 | 1,112,000 | 1,300,000 | 1,364,000 |
| ROE | 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% | 10.97% | 10.07% | 11.38% | 10.48% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $289,000K ÷ $746,000K
= 38.74%
The return on equity (ROE) for Wyndham Hotels & Resorts Inc has been relatively stable and consistently above 30% over the past eight quarters, indicating strong profitability and efficiency in generating returns for shareholders. The ROE peaked at 38.74% in Q4 2023 and has ranged between 33.41% and 33.76% in the first half of the year. This suggests that the company is effectively utilizing its shareholders' equity to generate profits.
The upward trend in ROE from Q1 2022 to Q4 2023 indicates improvement in the company's ability to generate profits from its equity base. The consistently high ROE levels indicate that Wyndham Hotels & Resorts Inc is efficiently managing its assets and liabilities to generate returns for its investors. Investors are likely to view this positively as it demonstrates the company's ability to generate profits with the capital invested by shareholders.
Overall, the trend in ROE for Wyndham Hotels & Resorts Inc reflects a strong financial performance and efficient capital management, which could potentially attract investors seeking companies with a track record of high returns on equity.
Peer comparison
Dec 31, 2023