The Wendy’s Co (WEN)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 222.74 | 255.46 | 241.76 | 249.99 | 222.56 | 212.72 | 225.53 | 227.67 | 208.09 | 217.99 | 208.58 | 212.62 | 203.26 | 281.89 | 279.29 | 241.66 | 242.15 | 246.95 | 256.04 | 250.67 | |
| DOH | days | 1.64 | 1.43 | 1.51 | 1.46 | 1.64 | 1.72 | 1.62 | 1.60 | 1.75 | 1.67 | 1.75 | 1.72 | 1.80 | 1.29 | 1.31 | 1.51 | 1.51 | 1.48 | 1.43 | 1.46 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 222.74
= 1.64
Days of Inventory on Hand (DOH) is a measure that indicates the average number of days it takes for a company to sell its inventory. A lower DOH typically suggests that a company is more efficient in managing its inventory.
Analyzing the data for The Wendy’s Co, we observe fluctuations in the DOH over the quarters. From March 31, 2020, to June 30, 2021, the DOH remained relatively stable, fluctuating between 1.29 to 1.51 days. This suggests a consistent level of efficiency in inventory management during this period.
However, from December 31, 2021, to June 30, 2022, there was a notable increase in DOH, peaking at 1.80 days. This increase may indicate potential challenges in inventory turnover or a build-up of excess inventory during this period.
Subsequently, from September 30, 2022, to December 31, 2024, the DOH fluctuated within a narrower range of 1.43 to 1.75 days. This indicates a stabilization of inventory management practices compared to the earlier observed peak.
Overall, The Wendy’s Co has shown variations in its DOH over the quarters, highlighting changes in inventory management efficiency. It is important for the company to monitor and optimize its inventory levels to ensure effective management of working capital and operational efficiency.
Peer comparison
Dec 31, 2024