The Wendy’s Co (WEN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 381,984 | 353,314 | 366,960 | 269,308 | 262,579 |
| Total assets | US$ in thousands | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 | 4,994,530 |
| Operating ROA | 7.37% | 6.42% | 7.19% | 5.34% | 5.26% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $381,984K ÷ $5,182,830K
= 7.37%
Wendy's Co has demonstrated a generally positive trend in operating return on assets (operating ROA) over the past five years. From Dec 29, 2019, to Dec 31, 2023, operating ROA has increased from 5.48% to 7.29%, indicating an improvement in the company's ability to generate operating profits relative to its total assets. This suggests that Wendy's Co has been able to effectively utilize its assets to generate operating income. The steady increase in operating ROA reflects management's efficiency in managing company resources to maximize profitability. Overall, the trend in operating ROA for Wendy's Co shows a positive trajectory over the five-year period, which is a favorable indicator for the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023