Wyndham Hotels & Resorts Inc (WH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,223,000 | 4,033,000 | 4,123,000 | 4,269,000 | 4,644,000 |
| Total stockholders’ equity | US$ in thousands | 650,000 | 746,000 | 962,000 | 1,089,000 | 963,000 |
| Financial leverage ratio | 6.50 | 5.41 | 4.29 | 3.92 | 4.82 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,223,000K ÷ $650,000K
= 6.50
The financial leverage ratio of Wyndham Hotels & Resorts Inc has shown fluctuations over the years. Starting at 4.82 in December 31, 2020, the ratio decreased to 3.92 by December 31, 2021, implying a reduction in the company's reliance on debt financing. However, by December 31, 2022, the ratio slightly increased to 4.29, indicating a potential uptick in debt usage. In the following year, by December 31, 2023, the financial leverage ratio spiked to 5.41, suggesting a significant increase in debt relative to equity. Subsequently, by December 31, 2024, the ratio further rose to 6.50, signaling a continued escalation in leverage, which may warrant further investigation into the company's financial structure and risk management strategies.
Peer comparison
Dec 31, 2024