The Wendy’s Co (WEN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,188,060 | 1,156,980 | 978,419 | 939,664 | 998,351 |
| Inventory | US$ in thousands | 6,690 | 7,129 | 5,934 | 4,732 | 3,891 |
| Inventory turnover | 177.59 | 162.29 | 164.88 | 198.58 | 256.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,188,060K ÷ $6,690K
= 177.59
Wendy's Co's inventory turnover has shown a fluctuating trend over the past five years. The company experienced a significant increase in inventory turnover from 2019 to 2021, with a peak of 153.57 in 2019. However, this trend reversed in 2021, with a decrease in inventory turnover to 103.08. In 2023, there was a notable improvement in inventory turnover to 118.76, indicating a more efficient management of inventory relative to the previous year. Overall, Wendy's Co has demonstrated varying levels of efficiency in managing its inventory turnover, which is a key indicator of how well the company is managing its inventory relative to its sales volume.
Peer comparison
Dec 31, 2023