Wyndham Hotels & Resorts Inc (WH)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,201,000 | 2,077,000 | 2,084,000 | 2,597,000 | 2,122,000 |
| Total stockholders’ equity | US$ in thousands | 746,000 | 962,000 | 1,089,000 | 963,000 | 1,212,000 |
| Debt-to-equity ratio | 2.95 | 2.16 | 1.91 | 2.70 | 1.75 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,201,000K ÷ $746,000K
= 2.95
The debt-to-equity ratio of Wyndham Hotels & Resorts Inc has shown fluctuating trends over the past five years. As of December 31, 2023, the ratio stands at 2.95, indicating that the company has a higher level of debt relative to shareholder equity. This represents an increase from the previous year's ratio of 2.16.
In 2021, the ratio was 1.91, which was lower compared to 2020 when it stood at 2.70. The lowest ratio observed in the past five years was in 2019 at 1.75. This indicates that the company has been relying more on debt financing, possibly to fund growth initiatives or acquisitions.
The upward trend in the debt-to-equity ratio may raise concerns about the company's financial leverage and its ability to meet debt obligations, especially in times of economic uncertainty. Investors and creditors may closely monitor this ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023