Wyndham Hotels & Resorts Inc (WH)

Wyndham Hotels & Resorts Inc's solvency ratios reflect its ability to meet its financial obligations in the long term by analyzing its debt levels relative to its assets, capital, and equity.

The Debt-to-assets ratio for Wyndham has fluctuated over the past five years, ranging from 0.47 to 0.56. The ratio indicates that, on average, 55% of the company's assets are financed by debt, highlighting a moderate reliance on borrowed funds.

The Debt-to-capital ratio has also varied, with values between 0.64 and 0.75. This indicates that, on average, 75% of the company's capital structure is made up of debt. The increasing trend in recent years indicates a higher proportion of debt funding compared to capital.

The Debt-to-equity ratio, ranging from 1.75 to 2.95 over the period, indicates the extent to which the company's operations are funded by debt relative to equity. The increasing trend suggests a higher reliance on debt financing compared to equity financing.

The Financial leverage ratio has fluctuated between 3.74 and 5.41, indicating the company's total assets' financing through debt. The increasing trend in this ratio suggests that the company has been using more debt to finance its assets compared to equity.

Overall, Wyndham Hotels & Resorts Inc's solvency ratios show a moderate to high level of leverage, with an increasing trend in recent years. This indicates that the company has been relying more on debt to fund its operations, which could increase financial risk and impact its ability to meet its long-term obligations.

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Coverage ratios

Wyndham Hotels & Resorts Inc's interest coverage has exhibited fluctuations over the past five years. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.

In 2023, the interest coverage ratio decreased to 5.05 from 6.55 in 2022. This may suggest a slight decrease in Wyndham Hotels & Resorts Inc's ability to cover its interest expenses from its operating income. However, the ratio remains above 1, indicating that the company's operating income is sufficient to cover its interest payments.

Compared to 2020 and 2019, where the interest coverage ratios were 1.86 and 4.64 respectively, the company has shown improvement in its ability to cover interest expenses. The ratio in 2021 was 4.89, slightly lower than in 2022.

Overall, despite the slight decrease in 2023, Wyndham Hotels & Resorts Inc has generally maintained a healthy interest coverage ratio over the five-year period, indicating a relatively strong ability to service its debt obligations with its operating income.