Wyndham Hotels & Resorts Inc (WH)

From the provided data on Wyndham Hotels & Resorts Inc's solvency ratios, we can analyze the company's financial stability and ability to meet its long-term obligations.

1. Debt-to-assets ratio:
- The debt-to-assets ratio decreased from 0.56 in 2020 to 0.49 in 2021, indicating that the company reduced its debt relative to its total assets. However, this ratio slightly increased in 2022 and 2024 but remained below the 2020 level, signifying that a significant portion of the company's assets are financed through debt.

2. Debt-to-capital ratio:
- Wyndham Hotels & Resorts Inc's debt-to-capital ratio declined from 0.73 in 2020 to 0.66 in 2021 but then increased to 0.79 in 2024. This suggests that the company relies more on debt financing relative to its total capital structure over the years, which may increase its financial risk.

3. Debt-to-equity ratio:
- The debt-to-equity ratio of the company fluctuated significantly from 1.91 in 2021 to 3.79 in 2024. Such a high ratio indicates that Wyndham Hotels & Resorts Inc has a higher level of debt compared to its equity, signaling potential financial risk and a reliance on debt for funding its operations and growth.

4. Financial leverage ratio:
- The financial leverage ratio, which reflects the company's debt relative to its equity, increased from 3.92 in 2021 to 6.50 in 2024. This upward trend indicates that Wyndham Hotels & Resorts Inc's financial risk has been escalating over the years, as the company is utilizing more debt to finance its operations and investments.

In summary, while the company has managed to reduce its debt ratios in some years, the overall trend shows an increasing reliance on debt financing, which may raise concerns about Wyndham Hotels & Resorts Inc's long-term financial health and ability to handle debt obligations effectively. The escalating debt ratios highlight the importance of closely monitoring the company's solvency and financial leverage to ensure sustainable growth and stability in the future.

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Coverage ratios

Interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. Looking at the data for Wyndham Hotels & Resorts Inc, the interest coverage ratio has shown fluctuations over the years:

1. As of December 31, 2020, the interest coverage ratio was negative at -0.41, indicating that the company's operating income was insufficient to cover its interest expenses. This is a concerning sign as it suggests financial distress.

2. By December 31, 2021, the interest coverage ratio improved significantly to 4.60, reflecting a better ability to cover interest payments. This could indicate an improvement in the company's financial performance and stability.

3. Continuing the positive trend, by December 31, 2022, the interest coverage ratio further increased to 6.95, signaling a stronger ability to meet interest obligations.

4. However, by December 31, 2023, the interest coverage ratio slightly decreased to 4.90, which, although still at a satisfactory level, indicates a potential decrease in the company's ability to cover interest expenses compared to the previous year.

5. Lastly, as of December 31, 2024, the interest coverage ratio dropped further to 3.97, showing a decline in the ability to cover interest payments, which could be a cause for concern.

Overall, while there have been fluctuations in Wyndham Hotels & Resorts Inc's interest coverage ratio over the years, it is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.