Wyndham Hotels & Resorts Inc (WH)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 283,000 | 262,000 | 299,000 | 276,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 100,000 | 100,000 | 99,000 | 83,000 |
| Interest coverage | 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 | 2.83 | 2.62 | 3.02 | 3.33 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $500,000K ÷ $102,000K
= 4.90
Wyndham Hotels & Resorts Inc's interest coverage has shown a declining trend over the past few quarters, starting at 6.55 in Q4 2022 and gradually decreasing to 5.05 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened over time. Despite the decline, the interest coverage ratios remained above 5 in all quarters, showing that the company still generates sufficient operating income to cover its interest payments. However, investors and creditors may want to monitor this trend closely as a further decrease in interest coverage could indicate potential challenges in meeting debt obligations.
Peer comparison
Dec 31, 2023