The Wendy’s Co (WEN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 | 1,709,000 |
| Property, plant and equipment | US$ in thousands | 891,080 | 895,778 | 906,867 | 915,889 | 977,000 |
| Fixed asset turnover | 2.45 | 2.34 | 2.09 | 1.89 | 1.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,181,580K ÷ $891,080K
= 2.45
Fixed asset turnover is a ratio that measures a company's ability to generate sales revenue from its fixed assets. Wendy's Co has shown a consistent improvement in its fixed asset turnover over the past five years. The ratio has increased from 1.75 in 2019 to 2.45 in 2023, indicating that the company has become more efficient in utilizing its fixed assets to generate sales. This improvement suggests that Wendy's Co has been able to increase its sales turnover relative to its investment in fixed assets. Overall, the trend in Wendy's Co fixed asset turnover reflects positively on the company's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023