Wyndham Hotels & Resorts Inc (WH)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,223,000 | 4,154,000 | 4,151,000 | 4,064,000 | 4,033,000 | 4,100,000 | 4,056,000 | 4,084,000 | 4,123,000 | 4,210,000 | 4,250,000 | 4,292,000 | 4,269,000 | 4,310,000 | 4,241,000 | 4,640,000 | 4,644,000 | 4,894,000 | 4,848,000 | 5,158,000 |
| Total stockholders’ equity | US$ in thousands | 650,000 | 583,000 | 623,000 | 674,000 | 746,000 | 856,000 | 880,000 | 936,000 | 962,000 | 1,056,000 | 1,096,000 | 1,159,000 | 1,089,000 | 1,123,000 | 1,060,000 | 991,000 | 963,000 | 963,000 | 933,000 | 1,112,000 |
| Financial leverage ratio | 6.50 | 7.13 | 6.66 | 6.03 | 5.41 | 4.79 | 4.61 | 4.36 | 4.29 | 3.99 | 3.88 | 3.70 | 3.92 | 3.84 | 4.00 | 4.68 | 4.82 | 5.08 | 5.20 | 4.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,223,000K ÷ $650,000K
= 6.50
Wyndham Hotels & Resorts Inc's financial leverage ratio has shown fluctuations over the periods analyzed. The ratio stood at 4.64 as of March 31, 2020, indicating that the company's debt levels were 4.64 times its equity. The ratio increased to 7.13 as of September 30, 2024, signaling a higher level of financial leverage with the company's debt exceeding its equity by over seven times.
The trend in Wyndham's financial leverage ratio suggests that the company has been relying more on debt to finance its operations and investments, which can magnify returns but also increase financial risk. An increasing leverage ratio may indicate that the company is taking on more debt to fund its growth or operations.
It is essential for investors and stakeholders to closely monitor Wyndham's financial leverage ratio to assess the company's ability to meet its debt obligations, manage its financial risks, and maintain sustainable growth. Additionally, changes in the financial leverage ratio can impact the company's credit rating and cost of capital.
Peer comparison
Dec 31, 2024