The Wendy’s Co (WEN)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 516,037 | 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 | 300,195 | 439,421 | 426,216 | 414,168 |
| Short-term investments | US$ in thousands | — | -313,969 | -315,944 | — | — | — | — | — | — | — | 43,676 | 43,743 | 44,574 | 43,422 | 42,592 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 349,698 | 337,446 | 341,275 | 323,637 |
| Cash ratio | 1.35 | 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 | 0.86 | 1.30 | 1.25 | 1.28 |
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 measures the ability of Wendy's Co to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet immediate financial obligations without relying on external sources of funding.
Based on the data provided, Wendy's Co has maintained a consistent cash ratio above 1.5 over the past eight quarters, indicating a healthy liquidity position. The trend shows a gradual decrease in the cash ratio from 1.99 in Q4 2022 to 1.45 in Q4 2023. This decline may be due to changes in the company's cash balance relative to its current liabilities.
Overall, Wendy's Co has demonstrated a strong ability to meet its short-term obligations with its available cash reserves, although it is essential to monitor any significant fluctuations in the cash ratio over time to assess the company's liquidity risk.
Peer comparison
Dec 31, 2023