Wyndham Hotels & Resorts (Wyndham Hotels & Resorts) Interest Coverage

: 3.17 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Wyndham Hotels & Resorts's Operating Income for the three months ended in Dec. 2023 was $111 Mil. Wyndham Hotels & Resorts's Interest Expense for the three months ended in Dec. 2023 was $-35 Mil. Wyndham Hotels & Resorts's interest coverage for the quarter that ended in Dec. 2023 was 3.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Wyndham Hotels & Resorts's Interest Coverage or its related term are showing as below:

WH' s Interest Coverage Range Over the Past 10 Years
Min: 1.82 Med: 6.16 Max: 298
Current: 4.77

WH's Interest Coverage is ranked worse than
50.91% of 607 companies
in the Travel & Leisure industry
Industry Median: 5.01 vs WH: 4.77

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Wyndham Hotels & Resorts Interest Coverage Historical Data

The historical data trend for Wyndham Hotels & Resorts's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Wyndham Hotels & Resorts Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

4.46

1.82

4.84

6.16

4.77

Wyndham Hotels & Resorts Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.76	5.23	5.21	6.07	3.17

Competitive Comparison

For the Lodging subindustry, Wyndham Hotels & Resorts's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Wyndham Hotels & Resorts Interest Coverage Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Wyndham Hotels & Resorts's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Wyndham Hotels & Resorts's Interest Coverage falls into.

Wyndham Hotels & Resorts Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Wyndham Hotels & Resorts's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Wyndham Hotels & Resorts's Interest Expense was $-108 Mil. Its Operating Income was $515 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,164 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	515	/	-108
	=	4.77

Wyndham Hotels & Resorts's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Wyndham Hotels & Resorts's Interest Expense was $-35 Mil. Its Operating Income was $111 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,164 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	111	/	-35
	=	3.17

The higher the ratio, the stronger the company's Financial Strength is.

Wyndham Hotels & Resorts (NYSE:WH) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Wyndham Hotels & Resorts Interest Coverage Related Terms

Thank you for viewing the detailed overview of Wyndham Hotels & Resorts's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Wyndham Hotels & Resorts (Wyndham Hotels & Resorts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Wyndham Hotels & Resorts Inc (NYSE:WH) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

2WY:Germany

Address

22 Sylvan Way, Parsippany, NJ, USA, 07054

Website

https://www.wyndhamhotels.com

As of Dec. 31, 2022, Wyndham Hotels & Resorts operates 843,000 rooms across more than 20 brands predominantly in the economy and midscale segments. Super 8 is the largest brand, representing around 19% of all rooms, with Days Inn (14%) and Ramada (14%) the next two largest brands. During the past several years, the company has expanded its extended stay/lifestyle brands, which appeal to travelers seeking to experience the local culture of a given location. Wyndham launched a new extended stay economy scale segment concept, ECHO, in the spring of 2022. The United States represents roughly 60% of total rooms. The company closed its La Quinta acquisition in the second quarter of 2018, adding around 90,000 rooms at the time the deal closed.

Executives

Nicola Rossi	officer: Chief Accounting Officer	WYNDHAM WORLDWIDE CORPORATION, 7 SYLVAN WAY, PARSIPPANY NJ 07054
Lisa Checchio	officer: Chief Marketing Officer	22 SYLVAN WAY, PARSIPPANY NJ 07054
Michele Allen	officer: Chief Financial Officer	22 SYLVAN WAY, PARSIPPANY NJ 07054
Paul F Cash	director, officer: Gen. Counsel & Corp. Sec.	C/O WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Scott R. Strickland	officer: Chief Info. Officer	C/O WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Scott Lepage	officer: President, the Americas	WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Stephen P Holmes	director	C/O CENDANT, 9 WEST 57TH, NEW YORK NY 10019
Monica Melancon	officer: Chief Human Resource Officer	WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Ronald L Nelson	director
Mary R Falvey	officer: Chief Admin. Officer	WYNDHAM WORLDWIDE CORPORATION, 7 SYLVAN WAY, PARSIPPANY NJ 07054
Geoffrey A Ballotti	director, officer: President & Chief Exec Officer	36 S. PENNSYLVANIA STREET, SUITE 500, INDIANAPOLIS IN 46204
Thomas Hunter Barber	officer: Chief Stra & Dev Officer	C/O WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
David B Wyshner	director, officer: Chief Financial Officer	C/O XPO LOGISTICS, INC., FIVE AMERICAN LANE, GREENWICH CT 06831
Pauline Richards	director	ARIES PARTNERS AND ARMOUR REINSURANCE LT, 11 CHURCH STREET, P.O. BOX HM 66, HAMILTON HM 11 D0 00000
Myra J Biblowit	director	THE BREAST CANCER RESEARCH FOUNDATION, 60 EAST 56TH STREET, NEW YORK NY 10022