The Wendy’s Co (WEN)

Number of days of payables

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Payables turnover 43.41 26.30 23.77 30.25 43.98
Number of days of payables days 8.41 13.88 15.36 12.07 8.30

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 43.41
= 8.41

Wendy's Co's number of days of payables has fluctuated over the past five years. The trend indicates a decrease in the number of days it takes the company to pay its suppliers. As of December 31, 2023, Wendy's Co takes approximately 12.57 days to pay its payables, which is a significant improvement compared to the 20.77 days in the previous year and the highest in Jan 2, 2022, at 24.56 days.

This decrease in the number of days of payables suggests that Wendy's Co has been managing its payment obligations more efficiently over the years. A lower number of days of payables can indicate that the company is able to negotiate better payment terms with its suppliers, maintain good relationships with them, or optimize its cash flow management.

Overall, a decreasing trend in the number of days of payables for Wendy's Co implies a positive financial position and effective working capital management. It also reflects the company's ability to balance its cash payments while maintaining healthy supplier relationships.


Peer comparison

Dec 31, 2023

Company name
Symbol
Number of days of payables
The Wendy’s Co
WEN
8.41
Shake Shack Inc
SHAK
14.60
Starbucks Corporation
SBUX
43.26