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WH (Wyndham Hotels & Resorts) Operating Income : $537 Mil (TTM As of Sep. 2024)


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What is Wyndham Hotels & Resorts Operating Income?

Wyndham Hotels & Resorts's Operating Income for the three months ended in Sep. 2024 was $175 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was $537 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wyndham Hotels & Resorts's Operating Income for the three months ended in Sep. 2024 was $175 Mil. Wyndham Hotels & Resorts's Revenue for the three months ended in Sep. 2024 was $396 Mil. Therefore, Wyndham Hotels & Resorts's Operating Margin % for the quarter that ended in Sep. 2024 was 44.19%.

Good Sign:

Wyndham Hotels & Resorts Inc operating margin is expanding. Margin expansion is usually a good sign.

Wyndham Hotels & Resorts's 5-Year average Growth Rate for Operating Margin % was 14.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Wyndham Hotels & Resorts's annualized ROC % for the quarter that ended in Sep. 2024 was 13.50%. Wyndham Hotels & Resorts's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 860.38%.


Wyndham Hotels & Resorts Operating Income Historical Data

The historical data trend for Wyndham Hotels & Resorts's Operating Income 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 Operating Income Chart

Wyndham Hotels & Resorts Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only 464.00 208.00 455.00 524.00 515.00

Wyndham Hotels & Resorts Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Income 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 164.00 111.00 106.00 145.00 175.00

Wyndham Hotels & Resorts Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $537 Mil.

* 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.


Wyndham Hotels & Resorts  (NYSE:WH) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Wyndham Hotels & Resorts's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=700 * ( 1 - 25.55% )/( (3869 + 3854)/ 2 )
=521.15/3861.5
=13.50 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Wyndham Hotels & Resorts's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=684/( ( (81 + max(-75, 0)) + (78 + max(-39, 0)) )/ 2 )
=684/( ( 81 + 78 )/ 2 )
=684/79.5
=860.38 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(275 + 0 + 87) - (331 + 106 + 0)
=-75

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(286 + 0 + 87) - (314 + 98 + 0)
=-39

When net working capital is negative, 0 is used.

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

3. Operating Income is also linked to Operating Margin %:

Wyndham Hotels & Resorts's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 )/Revenue (Q: Sep. 2024 )
=175/396
=44.19 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Wyndham Hotels & Resorts Operating Income Related Terms

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Wyndham Hotels & Resorts Business Description

Traded in Other Exchanges
Address
22 Sylvan Way, Parsippany, NJ, USA, 07054
As of Dec. 31, 2023, Wyndham Hotels & Resorts operates 872,000 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 (13%) 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. 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 launched a new extended stay economy scale segment concept, ECHO, in the spring of 2022. The United States represents 57% of total rooms.
Executives
Scott R. Strickland officer: Chief Info. Officer C/O WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Michele Allen officer: Chief Financial Officer 22 SYLVAN WAY, PARSIPPANY NJ 07054
Stephen P Holmes director C/O CENDANT, 9 WEST 57TH, NEW YORK NY 10019
Nicola Rossi officer: Chief Accounting Officer WYNDHAM WORLDWIDE CORPORATION, 7 SYLVAN WAY, PARSIPPANY NJ 07054
Monica Melancon officer: Chief Human Resource Officer WYNDHAM HOTELS & RESORTS, INC., 22 SYLVAN WAY, PARSIPPANY NJ 07054
Geoffrey A Ballotti director, officer: President & Chief Exec Officer 36 S. PENNSYLVANIA STREET, SUITE 500, INDIANAPOLIS IN 46204
Lisa Checchio officer: Chief Marketing 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 Lepage officer: President, the Americas 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
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
Bruce Churchill director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10024