The Wendy’s Co (WEN)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 381,984 | 379,372 | 375,904 | 362,911 | 353,314 | 346,194 | 328,254 | 358,719 | 366,960 | 368,630 | 369,783 | 303,698 | 269,308 | 227,458 | 225,133 | 245,045 | 262,579 | 271,661 | 269,986 | 260,896 |
| Total assets | US$ in thousands | 5,182,830 | 5,290,450 | 5,353,750 | 5,408,030 | 5,499,340 | 5,524,990 | 5,515,580 | 5,563,100 | 5,101,390 | 5,156,950 | 5,166,870 | 4,956,670 | 5,040,010 | 4,963,020 | 5,070,360 | 4,981,720 | 4,994,530 | 5,136,220 | 5,163,890 | 5,185,660 |
| Operating ROA | 7.37% | 7.17% | 7.02% | 6.71% | 6.42% | 6.27% | 5.95% | 6.45% | 7.19% | 7.15% | 7.16% | 6.13% | 5.34% | 4.58% | 4.44% | 4.92% | 5.26% | 5.29% | 5.23% | 5.03% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $381,984K ÷ $5,182,830K
= 7.37%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in its core operations. A higher operating ROA indicates more efficient utilization of assets to generate operating income.
Based on the data provided for Wendy`s Co, there has been a consistent improvement in the operating ROA over the past eight quarters. The trend shows a gradual increase from 5.65% in Q1 2022 to 7.29% in Q4 2023. This upward trend indicates that Wendy`s Co has been effectively leveraging its assets to generate operating income over time.
The operating ROA fluctuated within a range of 5.65% to 7.29% during the period under consideration. The quarterly variations may be driven by factors such as changes in operational efficiency, asset utilization, and profitability.
Overall, the increasing trend in operating ROA for Wendy`s Co suggests that the company has been making efficient use of its assets to generate operating profits, reflecting positively on its operational performance and financial health during the period analyzed.
Peer comparison
Dec 31, 2023