The Wendy’s Co (WEN)
Working capital 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 current assets | US$ in thousands | 837,653 | 1,058,280 | 592,849 | 687,623 | 554,047 |
| Total current liabilities | US$ in thousands | 381,930 | 387,999 | 426,925 | 413,308 | 349,698 |
| Working capital turnover | 4.79 | 3.13 | 11.43 | 6.32 | 8.36 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,181,580K ÷ ($837,653K – $381,930K)
= 4.79
The working capital turnover ratio of Wendy's Co has fluctuated over the past five years.
In 2023, Wendy's Co achieved a working capital turnover ratio of 4.79, indicating that the company generated $4.79 in revenue for every $1 of working capital invested. This represents an improvement compared to the previous year's ratio of 3.13.
In 2022, Wendy's Co experienced a significant decrease in working capital turnover to 11.43, reflecting a higher efficiency in utilizing its working capital to generate revenue.
The working capital turnover ratio in 2021 stood at 6.32, indicating a lower efficiency compared to the previous year. However, this ratio was still higher than the most recent ratio in 2023.
In 2020, Wendy's Co achieved a working capital turnover ratio of 8.36, suggesting a strong performance in utilizing its working capital efficiently to generate sales.
Overall, Wendy's Co has shown varying levels of efficiency in its working capital management over the years, with fluctuations in the working capital turnover ratio. Further analysis and comparison with industry peers may provide additional insights into the company's working capital utilization.
Peer comparison
Dec 31, 2023