Wyndham Hotels & Resorts Inc (WH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 500,000 | 489,000 | 486,000 | 509,000 | 556,000 | 551,000 | 552,000 | 524,000 | 427,000 | 360,000 | 270,000 | -39,000 | -46,000 | 36,000 | 33,000 | 289,000 | 283,000 | 262,000 | 299,000 | 276,000 |
| Long-term debt | US$ in thousands | 2,201,000 | 2,160,000 | 2,058,000 | 2,077,000 | 2,077,000 | 2,078,000 | 2,078,000 | 2,079,000 | 2,084,000 | 2,088,000 | 2,092,000 | 2,592,000 | 2,597,000 | 2,835,000 | 2,847,000 | 2,852,000 | 2,122,000 | 2,127,000 | 2,131,000 | 2,136,000 |
| 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 |
| Return on total capital | 16.97% | 16.21% | 16.54% | 16.89% | 18.30% | 17.58% | 17.39% | 16.18% | 13.46% | 11.21% | 8.57% | -1.09% | -1.29% | 0.95% | 0.87% | 7.29% | 8.49% | 8.09% | 8.71% | 7.89% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $500,000K ÷ ($2,201,000K + $746,000K)
= 16.97%
Analyzing the Return on Total Capital for Wyndham Hotels & Resorts Inc over the past eight quarters, we can observe a relatively stable trend, ranging from 15.87% to 17.48%. This indicates the company's efficiency in generating returns from its total capital employed.
The Return on Total Capital has shown a consistent performance, with slight fluctuations quarter over quarter. This demonstrates the company's ability to effectively utilize its total capital to generate profits for its shareholders.
Overall, Wyndham Hotels & Resorts Inc has maintained a healthy Return on Total Capital, reflecting sound financial management and effective allocation of resources to drive profitability.
Peer comparison
Dec 31, 2023