Wyndham Hotels & Resorts Inc (WH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,033,000 | 4,123,000 | 4,269,000 | 4,644,000 | 4,533,000 |
| Total stockholders’ equity | US$ in thousands | 746,000 | 962,000 | 1,089,000 | 963,000 | 1,212,000 |
| Financial leverage ratio | 5.41 | 4.29 | 3.92 | 4.82 | 3.74 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,033,000K ÷ $746,000K
= 5.41
The financial leverage ratio for Wyndham Hotels & Resorts Inc has fluctuated over the past five years, ranging from 3.74 to 5.41. The ratio indicates the extent to which the company is using debt to finance its operations and investments. A higher financial leverage ratio suggests that the company is relying more on debt, which can amplify returns but also increase financial risk.
In 2023, the financial leverage ratio of 5.41 indicates a significant increase from the previous year, reaching its highest level in the period analyzed. This could suggest that the company has taken on more debt relative to its equity, potentially to fund expansion or other strategic initiatives.
Conversely, in 2021, the financial leverage ratio of 3.92 was lower compared to the surrounding years. This lower ratio may indicate a more conservative approach to debt financing during that period.
Overall, fluctuations in the financial leverage ratio for Wyndham Hotels & Resorts Inc suggest varying levels of leverage and risk in the company's capital structure over the years, which should be carefully monitored to assess the company's financial health and performance.
Peer comparison
Dec 31, 2023