Wyndham Hotels & Resorts Inc (WH)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 3.79 | 2.95 | 2.16 | 1.91 | 2.70 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,463,000K ÷ $650,000K
= 3.79
The debt-to-equity ratio of Wyndham Hotels & Resorts Inc has fluctuated over the past five years, ranging from 1.91 to 3.79. A decreasing trend from 2020 to 2021 may suggest a reduction in debt relative to equity during this period. However, from 2021 to 2024, the ratio has been increasing, indicating a higher level of debt compared to equity in recent years.
A debt-to-equity ratio above 1 indicates that the company relies more on debt financing than equity. The upward trend from 2021 to 2024 may raise concerns about the company's financial leverage and its ability to meet its debt obligations. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial stability and risk levels related to its debt management strategy.
Peer comparison
Dec 31, 2024