The Wendy’s Co (WEN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,246,492 | 2,212,870 | 2,196,686 | 2,187,524 | 2,181,578 | 2,177,437 | 2,159,451 | 2,135,669 | 2,095,505 | 2,032,198 | 1,969,884 | 1,925,438 | 1,896,998 | 1,898,112 | 1,880,099 | 1,789,068 | 1,733,825 | 1,686,699 | 1,672,337 | 1,705,379 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | — | 888,798 | 885,089 | 895,778 | 882,283 | 890,423 | 895,684 | 1,963,770 | 1,867,900 | 1,880,310 | 898,420 | 915,889 | 1,957,770 | 934,980 | 949,006 |
| Fixed asset turnover | — | — | — | — | — | — | 2.43 | 2.41 | 2.34 | 2.30 | 2.21 | 2.15 | 0.97 | 1.02 | 1.00 | 1.99 | 1.89 | 0.86 | 1.79 | 1.80 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,246,492K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover indicates that the company is efficient in utilizing its fixed assets to generate revenue.
Analyzing the fixed asset turnover of The Wendy’s Co over the past few years, we observe fluctuations in the ratio. From March 31, 2020, to June 30, 2021, the ratio fluctuated between 0.86 and 1.99, showing some inconsistency in the company's utilization of fixed assets to generate sales.
From March 31, 2022, onwards, the fixed asset turnover ratio consistently improved, reaching 2.43 as of June 30, 2023. This increase indicates that Wendy’s has become more efficient in utilizing its fixed assets to generate sales revenue during this period.
As of the most recent available data, the fixed asset turnover ratio stood at 2.43, reflecting Wendy’s enhanced ability to generate sales from its fixed assets. However, it's worth noting that the data beyond June 30, 2023, is not available, and therefore, the trend in the ratio after this date remains unknown.
Overall, the analysis suggests that Wendy’s has made significant improvements in its fixed asset turnover ratio in recent years, indicating enhanced efficiency in utilizing its fixed assets to drive sales.
Peer comparison
Dec 31, 2024