The Wendy’s Co (WEN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 736,140 | 837,653 | 1,058,280 | 592,849 | 687,623 |
| Total current liabilities | US$ in thousands | 397,631 | 381,930 | 387,999 | 426,925 | 413,308 |
| Current ratio | 1.85 | 2.19 | 2.73 | 1.39 | 1.66 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $736,140K ÷ $397,631K
= 1.85
The current ratio of The Wendy's Co has displayed fluctuations over the past five years. From December 31, 2020, to December 31, 2021, the current ratio decreased from 1.66 to 1.39, indicating a potential decrease in the company's ability to cover its short-term obligations with current assets. However, there was a notable improvement in the ratio from 2021 to 2022, where it rose to 2.73, signifying a strengthened liquidity position. Despite this peak, the ratio slightly declined to 2.19 by December 31, 2023, and further to 1.85 by December 31, 2024. This downward trend in recent years may suggest a decreasing ability to meet short-term obligations with current assets. Overall, The Wendy's Co has shown varying levels of liquidity over the analyzed period, with attention required to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024