The business behind the dividend
| Measure | WH | Median | Formula |
|---|---|---|---|
| Return on equity | 41.2% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 13.5% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $209.00m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $321.00m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 28.1% | 14.3% | Operating income ÷ revenue |
| Net margin | 13.5% | 10.1% | Net income ÷ revenue |
| Debt to equity | 5.37x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.89x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 0.86x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.90x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -4.2% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 41.2% | 44.5% | 38.7% | 36.9% | 22.4% | -13.7% | 13.0% | 11.4% | 18.2% | 16.2% | 18.2% |
| Return on capital employed | 13.5% | 16.1% | 17.3% | 18.5% | 14.1% | -1.3% | 9.3% | 8.0% | 19.7% | — | 14.1% |
| Operating margin | 28.1% | 35.3% | 36.3% | 41.2% | 35.8% | -4.8% | 21.5% | 15.1% | 19.5% | 23.2% | 23.2% |
| Net margin | 13.5% | 20.6% | 20.9% | 26.2% | 19.6% | -13.9% | 11.0% | 8.7% | 18.0% | 13.9% | 13.9% |
| Debt to equity | 5.37x | 3.72x | 2.90x | 2.14x | 1.89x | 2.67x | 1.73x | 1.50x | 0.00x | — | 2.14x |
| Current ratio | 0.86x | 1.00x | 0.81x | 1.34x | 1.81x | 2.60x | 1.08x | 1.23x | 0.81x | — | 1.08x |
| Cash conversion | 1.90x | 1.00x | 1.30x | 1.12x | 1.75x | — | 0.64x | 1.43x | 1.21x | 1.50x | 1.30x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, Wyndham Hotels & Resorts pays out less than 70 of them. The median for that group is 33.1%, against this company’s 39.6%.
Closest on free cash flow
- Cracker Barrel Old Country Store (CBRL) 38.7%
- Bloomin' Brands (BLMN) 39.5%
- Albany International (AIN) 40.1%
- Atour Lifestyle Holdings (ATAT) 40.5%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →