The Wendy’s Co (WEN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 | 1,709,000 |
| Receivables | US$ in thousands | 126,967 | 116,426 | 119,540 | 109,891 | 131,016 |
| Receivables turnover | 17.18 | 18.00 | 15.87 | 15.78 | 13.04 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,181,580K ÷ $126,967K
= 17.18
Wendy's Co's receivables turnover has shown a consistent trend of improvement over the past five years. The receivables turnover ratio indicates how efficiently the company is collecting on its credit sales. A higher turnover ratio signifies that the company is collecting its accounts receivable more quickly.
In this case, Wendy's Co's receivables turnover has increased from 14.55 in 2019 to 17.93 in 2023, indicating an improving trend in receivables management. This suggests that Wendy's Co has been more successful in converting its credit sales into cash over the years, which is a positive sign of effective credit management and liquidity.
Overall, the increasing trend in receivables turnover for Wendy's Co reflects better efficiency in collecting receivables and managing working capital, which are crucial aspects of a company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023