The Wendy’s Co (WEN)
Quick 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 | 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 | — | — | — | — | — |
| Receivables | US$ in thousands | 126,967 | 138,064 | 142,590 | — | 116,426 | — | — | — | 119,540 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 1.68 | 1.04 | 1.19 | 1.69 | 2.22 | 1.75 | 1.76 | 1.82 | 0.86 | 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
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 been relatively stable and consistently above 1, indicating a healthy liquidity position over the past eight quarters. The company has maintained a strong ability to meet its short-term obligations using its most liquid assets.
The quick ratio peaked at 2.29 in Q4 2022, which suggests that Wendy's had $2.29 in liquid assets available to cover each dollar of its current liabilities. While there has been a slight decline in the quick ratio in subsequent quarters, it remained well above the benchmark of 1, indicating a comfortable liquidity position.
Overall, Wendy's Co has demonstrated a consistent ability to cover its short-term liabilities with its quick assets, reflecting solid liquidity management and financial stability.
Peer comparison
Dec 31, 2023