The Wendy’s Co (WEN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 6.64 | 5.40 | 5.16 | 4.95 | 4.79 | 4.18 | 3.74 | 3.54 | 3.13 | 3.01 | 3.05 | 2.86 | 11.43 | 4.35 | 4.03 | 7.30 | 6.32 | 6.82 | 8.15 | 10.58 |
The inventory turnover ratio for The Wendy’s Co has shown fluctuations over the periods examined. It increased from 250.67 in March 2020 to a peak of 281.89 in September 2021 but decreased thereafter to 222.74 by December 2024. This ratio indicates the number of times inventory is sold and replaced in a given period, and a higher ratio generally implies more efficient inventory management.
The receivables turnover ratio was not provided in the data, which suggests that information on how quickly the company collects its receivables is not available for analysis.
Similarly, the payables turnover ratio was also not available, which would have provided insight into how quickly the company pays its suppliers.
The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. The ratio fluctuated during the periods, ranging from a low of 2.86 in March 2022 to a high of 11.43 in December 2021. A higher ratio indicates more effective utilization of working capital in generating revenues.
Overall, the analysis of activity ratios for The Wendy’s Co suggests that there have been fluctuations in the efficiency of inventory management and working capital utilization over the periods examined.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.64 | 1.43 | 1.51 | 1.46 | 1.64 | 1.72 | 1.62 | 1.60 | 1.75 | 1.67 | 1.75 | 1.72 | 1.80 | 1.29 | 1.31 | 1.51 | 1.51 | 1.48 | 1.43 | 1.46 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) ratio for The Wendy's Co has exhibited some fluctuations over the past few years, ranging from as low as 1.29 days to as high as 1.80 days. Overall, the company seems to manage its inventory efficiently, with the ratio generally staying within a narrow range.
However, data on the Days of Sales Outstanding (DSO) and Number of Days of Payables was not available, which limits our ability to provide a comprehensive analysis of the company's activity ratios. It is essential to have complete information on all activity ratios to gain a holistic understanding of the company's operational efficiency and liquidity management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 2.43 | 2.41 | 2.34 | 2.30 | 2.21 | 2.15 | 0.97 | 1.02 | 1.00 | 1.99 | 1.89 | 0.86 | 1.79 | 1.80 |
| Total asset turnover | 0.45 | 0.44 | 0.43 | 0.42 | 0.39 | 0.41 | 0.40 | 0.39 | 0.38 | 0.37 | 0.36 | 0.35 | 0.37 | 0.37 | 0.36 | 0.36 | 0.34 | 0.34 | 0.33 | 0.34 |
The fixed asset turnover ratio for The Wendy's Co has fluctuated over the years, indicating varying levels of efficiency in generating sales from fixed assets. The ratio increased steadily from March 2020 to March 2023, peaking at 2.43, which suggests that the company was effectively utilizing its fixed assets to generate revenue. However, there is no data available for the ratio from September 2023 to December 2024, which makes it challenging to assess the trend in recent periods.
In terms of total asset turnover, the company's performance indicates a relatively stable efficiency in generating sales from total assets. The ratio gradually increased from March 2020 to June 2024, reaching 0.43, which indicates that Wendy's was able to generate sales turnover efficiently relative to its total asset base. This suggests that the company effectively utilized its total assets to drive sales growth over the years.
Overall, the trend in both fixed asset turnover and total asset turnover ratios reflects the company's ability to effectively utilize its assets to drive revenue generation, with some fluctuations observed in the fixed asset turnover ratio over the period analyzed.