The Wendy’s Co (WEN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,246,492 | 2,212,870 | 2,196,686 | 2,187,524 | 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 |
| Total current assets | US$ in thousands | 736,140 | 783,213 | 790,559 | 867,528 | 837,653 | 926,052 | 967,446 | 1,003,400 | 1,058,280 | 1,094,650 | 1,043,920 | 1,079,830 | 592,849 | 843,485 | 839,526 | 641,497 | 687,623 | 607,736 | 697,908 | 591,883 |
| Total current liabilities | US$ in thousands | 397,631 | 373,072 | 364,863 | 425,449 | 381,930 | 405,200 | 389,921 | 399,531 | 387,999 | 418,416 | 398,823 | 407,649 | 426,925 | 407,185 | 372,786 | 396,519 | 413,308 | 360,250 | 492,635 | 430,759 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,246,492K ÷ ($736,140K – $397,631K)
= 6.64
The working capital turnover ratio of The Wendy’s Co has fluctuated over the period analyzed. The ratio measures how efficiently the company is using its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support its operations.
From March 31, 2020, to December 31, 2021, the working capital turnover decreased steadily from 10.58 to 11.43. However, starting from March 31, 2022, to December 31, 2024, the ratio fluctuated within a range of 2.86 to 6.64. This indicates a significant variation in the company's ability to efficiently utilize its working capital during this period.
Overall, while the working capital turnover ratio of The Wendy’s Co experienced fluctuations, it is crucial to analyze the reasons behind these changes, such as shifts in operational efficiency, changes in working capital management practices, or alterations in revenue generation strategies. Further analysis and context would be needed to fully understand the implications of these fluctuations on the company's financial performance.
Peer comparison
Dec 31, 2024