Wyndham Hotels & Resorts (LTS:0YTR) ROCE % : 5.62% (As of Mar. 2024)

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What is Wyndham Hotels & Resorts ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Wyndham Hotels & Resorts's annualized ROCE % for the quarter that ended in Mar. 2024 was 5.62%.

Wyndham Hotels & Resorts ROCE % Historical Data

The historical data trend for Wyndham Hotels & Resorts's ROCE % 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.

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Wyndham Hotels & Resorts ROCE % Chart

Wyndham Hotels & Resorts Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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7.45

-1.05

10.50

14.78

13.88

Wyndham Hotels & Resorts Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															12.22	13.21	17.98	12.15	5.62

Wyndham Hotels & Resorts ROCE % Calculation

Wyndham Hotels & Resorts's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	506	/	( ( (4123 - 406)	+	(4033 - 459) )	/ 2 )
	=	506	/	( (3717	+	3574)	/ 2 )
	=	506	/	3645.5
	=	13.88 %

Wyndham Hotels & Resorts's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	200	/	( ( (4033 - 459)	+	(4064 - 522) )	/ 2 )
	=	200	/	( ( 3574	+	3542 )	/ 2 )
	=	200	/	3558
	=	5.62 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Wyndham Hotels & Resorts (LTS:0YTR) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Wyndham Hotels & Resorts ROCE % Related Terms

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Wyndham Hotels & Resorts (LTS:0YTR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Wyndham Hotels & Resorts Inc (LTS:0YTR) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WH:USA

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.

Wyndham Hotels & Resorts (LTS:0YTR) Headlines

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