The Wendy’s Co (WEN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 450,512 | 482,224 | 524,641 | 498,333 | 588,816 | 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 |
| Short-term investments | US$ in thousands | — | 285,711 | — | -306,908 | — | -313,969 | -315,944 | — | — | — | — | — | — | — | 43,676 | 43,743 | 44,574 | 43,422 | 42,592 | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 1.13 | 2.06 | 1.44 | 0.45 | 1.54 | 0.70 | 0.82 | 1.69 | 1.92 | 1.75 | 1.76 | 1.82 | 0.58 | 1.40 | 1.64 | 0.91 | 0.85 | 0.99 | 0.77 | 0.68 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($450,512K
+ $—K
+ $—K)
÷ $397,631K
= 1.13
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy as it indicates that a company has enough liquid assets to cover its short-term obligations.
Analyzing The Wendy’s Co's quick ratio data provided, we observe fluctuations over the reported periods. The quick ratio has shown variations ranging from as low as 0.45 to as high as 2.06. Notably, the company experienced some concerning levels below 1, indicating potential liquidity risks in meeting short-term obligations. Conversely, there were instances where the quick ratio surpassed 1, demonstrating improved liquidity positions.
It is essential to further investigate the reasons behind these fluctuations in the quick ratio to understand the company's management of its liquid assets and short-term liabilities. Additionally, monitoring the trend of the quick ratio over time can provide insights into The Wendy’s Co's liquidity management strategies and financial health.
Peer comparison
Dec 31, 2024