The Wendy’s Co (WEN)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 371,359 | 381,984 | 353,314 | 366,960 | 269,308 |
| Total assets | US$ in thousands | 5,034,840 | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 |
| Operating ROA | 7.38% | 7.37% | 6.42% | 7.19% | 5.34% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $371,359K ÷ $5,034,840K
= 7.38%
The operating return on assets (ROA) for The Wendy's Co has shown a positive trend over the past five years. In December 31, 2020, the operating ROA was recorded at 5.34%, and it has steadily increased to 7.38% by December 31, 2024. This indicates that the company has been able to generate more operating income relative to its assets over the period.
The improvement in operating ROA suggests that Wendy's has been effectively utilizing its assets to generate operating profits. A higher operating ROA indicates that the company is operating efficiently and effectively using its available resources to generate profits.
With a consistent increase in operating ROA over the years, Wendy's appears to be making positive strides in optimizing its asset utilization and operational performance. This trend may reflect better management decisions, cost control measures, or strategic initiatives that have contributed to the company's profitability and financial health.
Peer comparison
Dec 31, 2024