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Wyndham Hotels & Resorts (Wyndham Hotels & Resorts) ROE %

: 24.47% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Wyndham Hotels & Resorts's annualized net income for the quarter that ended in Dec. 2023 was $196 Mil. Wyndham Hotels & Resorts's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $801 Mil. Therefore, Wyndham Hotels & Resorts's annualized ROE % for the quarter that ended in Dec. 2023 was 24.47%.

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

WH' s ROE % Range Over the Past 10 Years
Min: -12.14   Med: 17.61   Max: 34.62
Current: 32.99

During the past 9 years, Wyndham Hotels & Resorts's highest ROE % was 34.62%. The lowest was -12.14%. And the median was 17.61%.

WH's ROE % is ranked better than
88.15% of 785 companies
in the Travel & Leisure industry
Industry Median: 5.92 vs WH: 32.99

Wyndham Hotels & Resorts ROE % Historical Data

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

* Premium members only.

Wyndham Hotels & Resorts Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only 11.94 -12.14 23.78 34.62 33.84

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
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.20 28.24 30.84 47.47 24.47

Competitive Comparison

For the Lodging subindustry, Wyndham Hotels & Resorts's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

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

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



Wyndham Hotels & Resorts ROE % Calculation

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

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=289/( (962+746)/ 2 )
=289/854
=33.84 %

Wyndham Hotels & Resorts's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=196/( (856+746)/ 2 )
=196/801
=24.47 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Wyndham Hotels & Resorts  (NYSE:WH) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=196/801
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(196 / 1284)*(1284 / 4066.5)*(4066.5 / 801)
=Net Margin %*Asset Turnover*Equity Multiplier
=15.26 %*0.3158*5.0768
=ROA %*Equity Multiplier
=4.82 %*5.0768
=24.47 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=196/801
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (196 / 300) * (300 / 444) * (444 / 1284) * (1284 / 4066.5) * (4066.5 / 801)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6533 * 0.6757 * 34.58 % * 0.3158 * 5.0768
=24.47 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Wyndham Hotels & Resorts ROE % Related Terms

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

Traded in Other Exchanges
Address
22 Sylvan Way, Parsippany, NJ, USA, 07054
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