The Wendy’s Co (WEN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.64 | 1.74 | 1.89 | 1.81 | 1.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 1.64 | 1.74 | 1.89 | 1.81 | 1.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.64 + — – —
= 1.64
The cash conversion cycle of The Wendy's Co has shown a slight upward trend from 1.55 days as of December 31, 2020, to 1.64 days as of December 31, 2024. This indicates that the company is taking slightly longer to convert its investments in inventory back into cash over the period under review. Despite some fluctuations in between, the general trend suggests a relatively efficient management of working capital and operational processes, as the cash conversion cycle remains low overall. This trend indicates that Wendy's has been effective in managing its inventory, accounts receivable, and accounts payable to optimize cash flow efficiently.
Peer comparison
Dec 31, 2024