Wyndham Hotels & Resorts Inc (WH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.55 | 0.53 | 0.51 | 0.51 | 0.50 | 0.49 | 0.49 | 0.48 | 0.49 | 0.48 | 0.49 | 0.56 | 0.56 | 0.58 | 0.59 | 0.55 | 0.47 | 0.46 | 0.46 | 0.44 |
| Debt-to-capital ratio | 0.75 | 0.72 | 0.70 | 0.69 | 0.68 | 0.66 | 0.65 | 0.64 | 0.66 | 0.65 | 0.66 | 0.72 | 0.73 | 0.75 | 0.75 | 0.72 | 0.64 | 0.66 | 0.62 | 0.61 |
| Debt-to-equity ratio | 2.95 | 2.52 | 2.34 | 2.22 | 2.16 | 1.97 | 1.90 | 1.79 | 1.91 | 1.86 | 1.97 | 2.62 | 2.70 | 2.94 | 3.05 | 2.56 | 1.75 | 1.91 | 1.64 | 1.57 |
| 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 |
The solvency ratios of Wyndham Hotels & Resorts Inc indicate a stable financial position over the quarters analyzed. The trend of the debt-to-assets ratio shows a gradual increase from 0.48 in Q1 2022 to 0.55 in Q4 2023, indicating that the company's debt level in relation to its total assets has been gradually increasing.
Similarly, the debt-to-capital ratio has shown an upward trend from 0.64 in Q1 2022 to 0.75 in Q4 2023, suggesting that the company is relying more on debt financing compared to its capital structure over time.
The debt-to-equity ratio has also been increasing steadily, from 1.79 in Q1 2022 to 2.95 in Q4 2023, signifying a higher reliance on debt in funding the company's operations compared to equity.
The financial leverage ratio has followed a similar trend, increasing from 3.70 in Q1 2022 to 5.41 in Q4 2023, indicating that the company's financial leverage has been growing steadily over the quarters.
Overall, while the solvency ratios of Wyndham Hotels & Resorts Inc have been increasing, it is essential to monitor these ratios closely to ensure that the company can meet its debt obligations and maintain a healthy financial position in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Wyndham Hotels & Resorts Inc has shown a consistent trend of strong interest coverage ratios over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on its debt obligations from its operating profits. A higher ratio indicates a greater ability to cover interest expenses.
The interest coverage ratios have ranged from 5.05 to 6.55, with Q1 2023 showing the highest ratio of 6.28. This indicates that the company has had a comfortable buffer to cover its interest expenses, with operating profits exceeding interest payments by a significant margin.
The consistent upward trend in interest coverage ratios from Q1 2022 to Q1 2023 suggests that the company's profitability and operational efficiency have improved over this period. This improvement bodes well for the company's financial health and indicates a lower risk of defaulting on its debt obligations due to insufficient earnings.
Overall, based on the trend of increasing interest coverage ratios, Wyndham Hotels & Resorts Inc appears to have a strong ability to meet its interest obligations, reflecting a healthy financial position and effective management of its debt levels.