The Wendy’s Co (WEN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 736,140 | 783,213 | 790,559 | 867,528 | 837,653 | 926,052 | 967,446 | 1,003,400 | 1,058,280 | 1,094,650 | 1,043,920 | 1,079,830 | 592,849 | 843,485 | 839,526 | 641,497 | 687,623 | 607,736 | 697,908 | 591,883 |
| 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 |
| Current ratio | 1.85 | 2.10 | 2.17 | 2.04 | 2.19 | 2.29 | 2.48 | 2.51 | 2.73 | 2.62 | 2.62 | 2.65 | 1.39 | 2.07 | 2.25 | 1.62 | 1.66 | 1.69 | 1.42 | 1.37 |
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 shown fluctuations over the reported periods, ranging from 1.37 to 2.73. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
In general, a current ratio above 1 indicates that the company has more current assets than current liabilities, implying a favorable position in meeting its short-term financial obligations.
Analyzing the trend, we observe that the company experienced an increasing trend in its current ratio from March 31, 2020, to June 30, 2022, reaching a peak of 2.73 on December 31, 2022. This improvement indicates an enhancement in the company's liquidity and ability to cover its short-term liabilities.
However, there was a slight decline in the current ratio in the subsequent periods, with the ratio decreasing to 1.85 as of December 31, 2024. This may indicate a relative decrease in liquidity compared to the earlier periods.
Overall, the current ratio of The Wendy's Co has demonstrated fluctuations, with periods of improvement in liquidity followed by slight declines. It is essential for investors and stakeholders to monitor this ratio to assess the company's short-term liquidity position and ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2024