The Wendy’s Co (WEN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,456,480 | 1,405,110 | 1,374,750 | 1,198,740 | 1,112,340 |
| Inventory | US$ in thousands | 6,529 | 6,690 | 7,129 | 5,934 | 4,732 |
| Inventory turnover | 223.08 | 210.03 | 192.84 | 202.01 | 235.07 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,456,480K ÷ $6,529K
= 223.08
The inventory turnover for The Wendy's Co has exhibited a consistent and noteworthy trend over the past five years. In December 31, 2020, the inventory turnover ratio stood at a robust 235.07, indicating that Wendy's efficiently managed its inventory by selling and restocking goods multiple times throughout the year. Subsequently, the ratio slightly declined to 202.01 by December 31, 2021, possibly due to changes in consumer demand or inventory management strategies.
In the following years, the inventory turnover continued to demonstrate strong performance, with figures of 192.84 in 2022, 210.03 in 2023, and 223.08 in 2024. These results suggest that Wendy's effectively controls its inventory levels, ensuring a balance between stocking enough goods for demand while minimizing excess stock that could lead to obsolescence or storage costs.
Overall, the consistent high inventory turnover ratios indicate that The Wendy's Co efficiently manages its inventory, which may contribute to improved cash flow, reduced holding costs, and better overall operational performance.
Peer comparison
Dec 31, 2024