The Wendy’s Co (WEN)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,188,060 | 1,156,980 | 978,419 | 939,664 | 998,351 |
| Payables | US$ in thousands | 27,370 | 43,996 | 41,163 | 31,063 | 22,701 |
| Payables turnover | 43.41 | 26.30 | 23.77 | 30.25 | 43.98 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,188,060K ÷ $27,370K
= 43.41
The payables turnover for Wendy's Co has shown an increasing trend over the past five years, indicating that the company is managing its accounts payables more efficiently. The payables turnover ratio measures how many times a company pays off its accounts payable balance on average within a specific period.
In 2023, Wendy's Co achieved a payables turnover ratio of 29.03, the highest among the five years presented. This indicates that the company's payables were turned over approximately 29 times during the year. The substantial increase from the previous year suggests that Wendy's Co has improved its ability to manage its payables efficiently.
Overall, the increasing trend in payables turnover ratio is a positive sign for Wendy's Co as it indicates effective management of accounts payables, potentially resulting in improved cash flow and liquidity for the company.
Peer comparison
Dec 31, 2023