Wyndham Hotels & Resorts Inc (WH)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 492,000 | 500,000 | 556,000 | 428,000 | -46,000 |
| Long-term debt | US$ in thousands | 2,463,000 | 2,201,000 | 2,077,000 | 2,084,000 | 2,597,000 |
| Total stockholders’ equity | US$ in thousands | 650,000 | 746,000 | 962,000 | 1,089,000 | 963,000 |
| Return on total capital | 15.80% | 16.97% | 18.30% | 13.49% | -1.29% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $492,000K ÷ ($2,463,000K + $650,000K)
= 15.80%
Wyndham Hotels & Resorts Inc's return on total capital has shown a positive trend over the years, indicating an improvement in utilizing its total capital efficiently.
At the end of 2020, the return on total capital was negative at -1.29%, which may suggest inefficiencies or challenges in capital deployment. However, by the end of 2021, the return improved significantly to 13.49%, indicating a turnaround in capital management.
The trend continued positively in 2022 and 2023 with returns of 18.30% and 16.97% respectively, showcasing the company's ability to generate earnings relative to the total capital employed.
By the end of 2024, the return on total capital slightly decreased to 15.80%, but it still remains at a healthy level, reflecting a strong performance in utilizing capital resources effectively.
Overall, the increasing trend in return on total capital from 2020 to 2024 signifies improved operational efficiency and effective utilization of capital by Wyndham Hotels & Resorts Inc.
Peer comparison
Dec 31, 2024