Wyndham Hotels & Resorts Inc (WH)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 4,533,000 | 4,630,000 | 4,656,000 | 4,904,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,212,000 | 1,112,000 | 1,300,000 | 1,364,000 |
| Financial leverage ratio | 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 | 3.74 | 4.16 | 3.58 | 3.60 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,033,000K ÷ $746,000K
= 5.41
Wyndham Hotels & Resorts Inc has exhibited a consistent upward trend in its financial leverage ratio over the past eight quarters, indicating an increase in the company's reliance on debt financing relative to its equity. The financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, increased from 3.70 in Q1 2022 to 5.41 in Q4 2023.
The rising trend in the financial leverage ratio suggests that Wyndham Hotels & Resorts Inc has been increasingly using debt to fund its operations and growth initiatives. While higher leverage can magnify returns for shareholders during periods of growth, it also exposes the company to greater financial risk, especially in the event of economic downturns or declines in the company's operational performance.
Investors and creditors should closely monitor the company's financial leverage ratio to assess its ability to manage debt obligations and remain financially stable in the long term. It is important for Wyndham Hotels & Resorts Inc to strike a balance between leveraging debt for strategic investments and maintaining a manageable level of financial risk to safeguard the interests of stakeholders.
Peer comparison
Dec 31, 2023