The Wendy’s Co (WEN)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 1,709,002 | 1,679,631 | 1,642,301 | 1,617,955 |
| Property, plant and equipment | US$ in thousands | 891,080 | 886,792 | 888,798 | 885,089 | 895,778 | 882,283 | 890,423 | 895,684 | 906,867 | 873,250 | 881,798 | 898,420 | 915,889 | 922,717 | 934,980 | 949,006 | 977,000 | 980,872 | 992,302 | 1,003,230 |
| Fixed asset turnover | 2.45 | 2.46 | 2.43 | 2.41 | 2.34 | 2.30 | 2.21 | 2.15 | 2.09 | 2.17 | 2.13 | 1.99 | 1.89 | 1.83 | 1.79 | 1.80 | 1.75 | 1.71 | 1.66 | 1.61 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,181,578K ÷ $891,080K
= 2.45
Wendy's Co's fixed asset turnover has shown a consistent upward trend over the past eight quarters, which indicates the company's efficiency in generating revenue from its fixed assets. The ratio has steadily improved from 2.15 in Q1 2022 to 2.45 in Q4 2023, reflecting management's effective utilization of its fixed assets to generate sales.
A fixed asset turnover ratio above 1 indicates that the company is effectively leveraging its fixed assets to generate sales, with higher ratios being more favorable. In this case, Wendy's Co's fixed asset turnover ratios consistently above 2 signify that the company is efficiently using its fixed assets to drive revenue growth.
The increasing trend in fixed asset turnover suggests that Wendy's Co has been able to effectively manage its fixed assets to drive sales growth and improve operational efficiency over the quarters analyzed. This trend is a positive indicator of the company's ability to optimize its asset base and generate revenue efficiently.
Peer comparison
Dec 31, 2023