Wyndham Hotels & Resorts Inc (WH)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 492,000 | 467,000 | 459,000 | 437,000 | 500,000 | 489,000 | 486,000 | 509,000 | 556,000 | 551,000 | 552,000 | 524,000 | 427,000 | 360,000 | 270,000 | -39,000 | -46,000 | 36,000 | 33,000 | 289,000 |
| Interest expense (ttm) | US$ in thousands | 123,000 | 121,000 | 114,000 | 108,000 | 102,000 | 93,000 | 87,000 | 83,000 | 81,000 | 81,000 | 82,000 | 84,000 | 92,000 | 102,000 | 109,000 | 115,000 | 112,000 | 107,000 | 103,000 | 101,000 |
| Interest coverage | 4.00 | 3.86 | 4.03 | 4.05 | 4.90 | 5.26 | 5.59 | 6.13 | 6.86 | 6.80 | 6.73 | 6.24 | 4.64 | 3.53 | 2.48 | -0.34 | -0.41 | 0.34 | 0.32 | 2.86 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $492,000K ÷ $123,000K
= 4.00
Interest coverage ratio is a financial metric that indicates a company's ability to pay interest expenses on its outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Analyzing the interest coverage ratio of Wyndham Hotels & Resorts Inc over the reported periods shows a fluctuating trend.
- The interest coverage ratio was strong at 2.86 in March 2020, indicating the company's ability to cover its interest payments almost three times over.
- However, the ratio decreased significantly to 0.32 in June 2020 and remained low at 0.34 in September 2020, suggesting a potential strain on the company's ability to cover interest expenses with its earnings.
- By December 2020, the interest coverage ratio turned negative, indicating that the company's earnings were insufficient to cover its interest payments.
- The trend reversed in the following periods, with the interest coverage ratio improving to 6.86 by December 2022, signaling a strengthened ability to cover interest obligations.
- Subsequently, the ratio fluctuated around the 5-6 range until December 2024, indicating a relatively stable interest coverage position for Wyndham Hotels & Resorts Inc.
Overall, the fluctuating trend in Wyndham Hotels & Resorts Inc's interest coverage ratio reflects varying levels of financial health and ability to meet interest obligations over the analyzed period. Investors and stakeholders should continue to monitor this ratio to assess the company's financial stability and debt repayment capacity.
Peer comparison
Dec 31, 2024