The Wendy’s Co (WEN)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 554,047 | 673,774 | 672,383 | 663,764 |
| 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 |
| Current ratio | 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 | 1.58 | 2.00 | 1.97 | 2.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $837,653K ÷ $381,930K
= 2.19
The current ratio of Wendy's Co has been relatively stable over the past eight quarters, ranging from 2.19 to 2.73. A higher current ratio indicates that the company has more current assets relative to its current liabilities, suggesting stronger short-term financial health and liquidity.
The gradual decrease from a high of 2.73 in Q4 2022 to 2.19 in Q4 2023 may indicate a potential decrease in the company's ability to cover its short-term obligations with current assets. However, the current ratio has since increased to 2.29 in Q3 2023, showing some improvement.
Overall, the company has maintained a current ratio above 2, a generally favorable level that suggests Wendy's Co has sufficient current assets to meet its short-term liabilities. Investors and analysts typically view current ratios above 1.5 as healthy, and Wendy's Co's consistent ratios in the range of 2 to 2.5 indicate a strong ability to manage its short-term financial obligations.
Peer comparison
Dec 31, 2023