The Wendy’s Co (WEN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,246,826 | 1,244,814 | 1,242,103 | 1,234,703 | 1,156,976 | 1,110,810 | 1,059,363 | 1,016,543 | 978,419 | 890,784 | 915,736 | 916,014 | 939,553 | 911,407 | 904,258 | 913,038 | 896,643 | 857,859 | 837,417 | 737,501 |
| Inventory | US$ in thousands | 6,690 | 6,813 | 6,549 | 6,452 | 7,129 | 6,578 | 6,456 | 5,945 | 5,934 | 4,257 | 4,261 | 4,733 | 4,732 | 4,604 | 4,411 | 4,558 | 3,891 | 3,549 | 3,546 | 3,550 |
| Inventory turnover | 186.37 | 182.71 | 189.66 | 191.37 | 162.29 | 168.87 | 164.09 | 170.99 | 164.88 | 209.25 | 214.91 | 193.54 | 198.55 | 197.96 | 205.00 | 200.32 | 230.44 | 241.72 | 236.16 | 207.75 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,246,826K ÷ $6,690K
= 186.37
Inventory turnover is a crucial metric that measures how many times a company sells and replaces its inventory within a given period. Wendy's Co has exhibited a consistent trend of inventory turnover over the past eight quarters. The company's inventory turnover ratio has ranged from 105.80 to 121.61 during this period.
In the most recent quarter (Q4 2023), Wendy's Co achieved an inventory turnover ratio of 118.76, indicating that the company sold and replaced its inventory approximately 118.76 times during that quarter. This represents a slight increase from the previous quarter's turnover of 116.21 in Q3 2023.
The overall trend suggests that Wendy's Co effectively manages its inventory levels and replenishes stock efficiently. Higher inventory turnover ratios generally indicate that the company is selling its products quickly, which can lead to more cash inflows and reduced risk of holding obsolete or excess inventory.
It is important to note that comparing Wendy's Co's inventory turnover to industry peers or benchmarks would provide further insights into the company's inventory management efficiency. Additionally, analyzing the reasons behind fluctuations in inventory turnover ratios can help identify potential areas for improvement in inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023