The Wendy’s Co (WEN)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 45.55 | 29.86 | 32.15 | 27.23 | 26.30 | 32.04 | 29.30 | 30.66 | 23.77 | 33.61 | 28.24 | 31.24 | 30.25 | 50.59 | 43.90 | 40.51 | 39.50 | 36.06 | 48.36 | 45.09 | |
| Number of days of payables | days | 8.01 | 12.23 | 11.35 | 13.40 | 13.88 | 11.39 | 12.46 | 11.90 | 15.36 | 10.86 | 12.93 | 11.69 | 12.07 | 7.21 | 8.31 | 9.01 | 9.24 | 10.12 | 7.55 | 8.09 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 45.55
= 8.01
To analyze Wendy's Co number of days of payables, we can observe that it has fluctuated over the past eight quarters. The number of days of payables indicates the average number of days the company takes to pay its suppliers and vendors.
In Q4 2023, Wendy's Co had 12.57 days of payables, which decreased compared to the previous quarter, indicating that the company is paying its suppliers more quickly. This could imply improved liquidity or possibly more favorable payment terms negotiated with suppliers.
In Q3 2023, the number of days of payables increased to 19.22 days, suggesting a longer payment period compared to Q4 2023. This increase may be due to various factors such as changes in the company's purchasing patterns or slower cash flows.
Looking further back, we can see some variability in the number of days of payables over the past two years, with fluctuations between approximately 17 to 21 days.
Overall, analyzing the trend in Wendy's Co number of days of payables can provide insights into the company's working capital management, vendor relationships, and financial health. A decreasing trend may indicate efficient cash management, while an increasing trend could signal potential liquidity challenges or changing business dynamics.
Peer comparison
Dec 31, 2023