The Wendy’s Co (WEN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 516,037 | 745,889 | 249,438 | 306,989 | 300,195 |
| Short-term investments | US$ in thousands | — | — | — | 44,574 | — |
| Total current liabilities | US$ in thousands | 381,930 | 387,999 | 426,925 | 413,308 | 349,698 |
| Cash ratio | 1.35 | 1.92 | 0.58 | 0.85 | 0.86 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($516,037K
+ $—K)
÷ $381,930K
= 1.35
The cash ratio of Wendy's Co has shown fluctuating trends over the past five years. It was 1.45 in 2023, 1.99 in 2022, 0.66 in 2021, 0.96 in 2020, and 0.90 in 2019. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding. The decrease in the cash ratio from 2022 to 2023 may indicate a decrease in available cash relative to short-term liabilities. It would be important for Wendy's Co to closely monitor its cash position and liquidity management to ensure it can meet its financial obligations effectively.
Peer comparison
Dec 31, 2023