The Wendy’s Co (WEN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 516,037 | 745,889 | 249,438 | 306,989 | 300,195 |
| Short-term investments | US$ in thousands | — | — | — | 44,574 | — |
| Receivables | US$ in thousands | 126,967 | 116,426 | 119,540 | 109,891 | 131,016 |
| Total current liabilities | US$ in thousands | 381,930 | 387,999 | 426,925 | 413,308 | 349,698 |
| Quick ratio | 1.68 | 2.22 | 0.86 | 1.12 | 1.23 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($516,037K
+ $—K
+ $126,967K)
÷ $381,930K
= 1.68
The quick ratio of Wendy's Co has fluctuated over the past five years. In 2023, the quick ratio was 1.77, indicating that the company had $1.77 in liquid assets available to cover each $1 of current liabilities. This represents a decrease from the previous year's level of 2.29.
Looking further back, in 2022, the quick ratio was 0.94, indicating a lower level of liquidity compared to the more recent years. The quick ratio improved in 2021 to 1.22 and remained stable in 2019 at 1.23.
Overall, the quick ratio of Wendy's Co has shown variability over the five-year period, with higher ratios indicating better liquidity and ability to meet short-term obligations. It is important for investors and analysts to monitor this ratio to assess the company's short-term financial health and its ability to cover its current liabilities with its liquid assets.
Peer comparison
Dec 31, 2023