The Wendy’s Co (WEN)
Total asset 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 |
| Total assets | US$ in thousands | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 | 4,994,530 |
| Total asset turnover | 0.42 | 0.38 | 0.37 | 0.34 | 0.34 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,181,580K ÷ $5,182,830K
= 0.42
Total asset turnover is indicative of a company's efficiency in generating sales from its assets. Wendy's Co has shown an improvement in this ratio over the past five years, from 0.34 in 2019 to 0.42 in 2023. This indicates that Wendy's has been able to generate more revenue relative to its total assets in recent years. A higher total asset turnover ratio suggests that the company is managing its assets effectively to generate sales.
Overall, the increasing trend in Wendy's total asset turnover ratio reflects positively on the company's operational efficiency and asset utilization. This improvement may be a result of better management of inventory, efficient use of fixed assets, or an increase in sales volume. It is essential for investors and stakeholders to monitor this ratio over time to assess Wendy's ability to efficiently use its assets to drive revenue growth.
Peer comparison
Dec 31, 2023