The Wendy’s Co (WEN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 450,512 | 516,037 | 745,889 | 249,438 | 306,989 |
| Short-term investments | US$ in thousands | — | — | — | — | 44,574 |
| Total current liabilities | US$ in thousands | 397,631 | 381,930 | 387,999 | 426,925 | 413,308 |
| Cash ratio | 1.13 | 1.35 | 1.92 | 0.58 | 0.85 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($450,512K
+ $—K)
÷ $397,631K
= 1.13
The cash ratio of The Wendy's Co over the years shows varying levels of liquidity. In 2020, the cash ratio was 0.85, indicating that for every dollar of current liabilities, the company had $0.85 in cash or cash equivalents. The ratio decreased significantly to 0.58 in 2021, signaling potential liquidity challenges. However, from 2022 to 2024, The Wendy's Co improved its liquidity position with ratios of 1.92, 1.35, and 1.13 respectively. These higher ratios suggest the company had more liquid assets available to cover its short-term obligations. Overall, the trend indicates fluctuations in the company's ability to meet its short-term obligations with cash on hand, with notable improvements in later years.
Peer comparison
Dec 31, 2024