Wyndham Hotels & Resorts Inc (WH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 492,000 | 467,000 | 459,000 | 437,000 | 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 |
| Long-term debt | US$ in thousands | 2,463,000 | 2,487,000 | 2,427,000 | 2,241,000 | 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 |
| 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 |
| Return on total capital | 15.80% | 15.21% | 15.05% | 14.99% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 7.29% in March 2020, dipped to negative values in December 2020 and March 2021, and then displayed a positive trend from June 2021 onwards. Notably, the Return on Total Capital gradually improved from 8.57% in June 2021 to 18.30% by December 31, 2022. However, there was a slight decline in the ratio in the subsequent periods, stabilizing around the range of 15% to 17% from June 2023 to December 2024. Overall, the trend indicates an improvement in Wyndham Hotels & Resorts Inc's ability to generate returns relative to its total capital investment in the latter part of the period under review.
Peer comparison
Dec 31, 2024