The Wendy’s Co (WEN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,454,264 | 1,596,890 | 1,542,163 | 1,527,448 | 1,488,927 | 1,449,241 | 1,476,994 | 1,468,929 | 1,483,448 | 1,433,925 | 1,346,571 | 1,264,007 | 1,206,142 | 1,199,990 | 1,190,071 | 1,143,783 | 1,145,844 | 1,136,943 | 1,129,375 | 1,142,533 |
| Inventory | US$ in thousands | 6,529 | 6,251 | 6,379 | 6,110 | 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 |
| Inventory turnover | 222.74 | 255.46 | 241.76 | 249.99 | 222.56 | 212.72 | 225.53 | 227.67 | 208.09 | 217.99 | 208.58 | 212.62 | 203.26 | 281.89 | 279.29 | 241.66 | 242.15 | 246.95 | 256.04 | 250.67 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,454,264K ÷ $6,529K
= 222.74
The inventory turnover ratio for The Wendy's Co has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates the number of times the company's inventory was sold and replaced during a specific period.
The inventory turnover ratio reached its peak at 281.89 on September 30, 2021, suggesting that Wendy's efficiently managed its inventory by selling and replacing it quickly during that quarter. Subsequently, the ratio decreased but showed signs of improvement in the following quarters, indicating effective inventory management.
However, the ratio experienced a decline to 203.26 on December 31, 2021, before gradually increasing over the next few quarters. The ratio stood at 255.46 on September 30, 2024, indicating a positive trend in inventory turnover efficiency.
Overall, the varying inventory turnover values suggest fluctuations in Wendy's inventory management practices and their ability to efficiently control the flow of goods through their supply chain during the referenced period. An upward trend in the inventory turnover ratio reflects stronger sales and efficient inventory management, while a declining trend may signify excess inventory or slower sales, highlighting areas for potential improvement.
Peer comparison
Dec 31, 2024
Dec 31, 2024