Wyndham Hotels & Resorts Inc (WH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 500,000 | 556,000 | 428,000 | -46,000 | 307,000 |
| Long-term debt | US$ in thousands | 2,201,000 | 2,077,000 | 2,084,000 | 2,597,000 | 2,122,000 |
| Total stockholders’ equity | US$ in thousands | 746,000 | 962,000 | 1,089,000 | 963,000 | 1,212,000 |
| Return on total capital | 16.97% | 18.30% | 13.49% | -1.29% | 9.21% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $500,000K ÷ ($2,201,000K + $746,000K)
= 16.97%
Wyndham Hotels & Resorts Inc has shown a consistent improvement in its return on total capital over the past five years. The return on total capital has increased from 13.92% in 2019 to 17.48% in 2023, indicating an upward trend in the company's ability to generate profit from its total capital investments. This suggests that the company is becoming more efficient in utilizing its total capital to generate returns for its shareholders. The steady improvement in the return on total capital reflects positively on Wyndham's financial performance and indicates effective management of its capital resources over the years.
Peer comparison
Dec 31, 2023