The Wendy’s Co (WEN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 450,512 | 482,224 | 524,641 | 498,333 | 588,816 | 598,025 | 635,433 | 676,469 | 745,889 | 731,801 | 700,813 | 741,216 | 249,438 | 571,502 | 568,139 | 316,488 | 306,989 | 313,187 | 338,002 | 294,890 |
| Short-term investments | US$ in thousands | — | 285,711 | — | -306,908 | — | -313,969 | -315,944 | — | — | — | — | — | — | — | 43,676 | 43,743 | 44,574 | 43,422 | 42,592 | — |
| 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 |
| Cash ratio | 1.13 | 2.06 | 1.44 | 0.45 | 1.54 | 0.70 | 0.82 | 1.69 | 1.92 | 1.75 | 1.76 | 1.82 | 0.58 | 1.40 | 1.64 | 0.91 | 0.85 | 0.99 | 0.77 | 0.68 |
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 has shown fluctuations over the reported periods, ranging from a low of 0.45 to a high of 2.06. The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Generally, a higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Analyzing the trend of The Wendy's Co cash ratio, we can observe that it peaked at 2.06 on September 30, 2024, indicating a significant increase in the company's cash position relative to its short-term liabilities. This could suggest improved liquidity and financial stability for the company during that period.
However, it is important to note that the cash ratio experienced some fluctuations, with periods of both increase and decrease. For instance, the cash ratio dropped to its lowest point of 0.45 on March 31, 2024, which may indicate a temporary strain on the company's liquidity position during that quarter.
Overall, The Wendy's Co's cash ratio trend demonstrates variability in its cash position and ability to cover short-term obligations with available cash and cash equivalents. Further analysis and consideration of other financial ratios and factors would provide a more comprehensive view of the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2024