The Wendy’s Co (WEN)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,181,578 | 2,177,437 | 2,159,451 | 2,135,669 | 2,095,505 | 2,032,198 | 1,969,884 | 1,925,438 | 1,896,998 | 1,898,112 | 1,880,099 | 1,789,068 | 1,733,825 | 1,686,699 | 1,672,337 | 1,705,379 | 1,709,002 | 1,679,631 | 1,642,301 | 1,617,955 |
| Total assets | US$ in thousands | 5,182,830 | 5,290,450 | 5,353,750 | 5,408,030 | 5,499,340 | 5,524,990 | 5,515,580 | 5,563,100 | 5,101,390 | 5,156,950 | 5,166,870 | 4,956,670 | 5,040,010 | 4,963,020 | 5,070,360 | 4,981,720 | 4,994,530 | 5,136,220 | 5,163,890 | 5,185,660 |
| Total asset turnover | 0.42 | 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 | 0.34 | 0.33 | 0.32 | 0.31 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,181,578K ÷ $5,182,830K
= 0.42
The total asset turnover ratio for Wendy's Co has been steadily increasing over the past eight quarters, from 0.35 in Q1 2022 to 0.42 in Q4 2023. This indicates that Wendy's Co has been able to generate more sales revenue relative to its total assets over time.
A higher total asset turnover ratio generally implies that the company is more efficient in utilizing its assets to generate sales. It suggests that Wendy's Co is effectively managing its assets to drive revenue growth.
The consistent improvement in the total asset turnover ratio reflects positively on Wendy's Co's operational efficiency and could indicate effective management of inventory, efficient collection of accounts receivable, or better utilization of fixed assets.
Overall, the increasing trend in total asset turnover is a positive indicator of Wendy's Co's ability to generate sales from its asset base, which is essential for sustainable business performance and profitability.
Peer comparison
Dec 31, 2023