The Wendy’s Co (WEN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 204,440 | 177,370 | 200,392 | 117,832 | 136,940 |
| Total assets | US$ in thousands | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 | 4,994,530 |
| ROA | 3.94% | 3.23% | 3.93% | 2.34% | 2.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $204,440K ÷ $5,182,830K
= 3.94%
Wendy's Co has shown a fluctuating trend in its return on assets (ROA) over the past five years. The ROA was 3.94% at the end of December 31, 2023, which represents an improvement compared to the previous year's 3.23%. This indicates that Wendy's Co was more efficient in generating profit from its assets in 2023.
Looking further back, the ROA was also relatively high at 3.93% on January 2, 2022, demonstrating a strong performance in asset utilization. However, there was a dip in ROA to 2.34% on January 3, 2021, which suggests a period of lower profitability relative to the company's assets.
The ROA improved slightly to 2.74% as of December 29, 2019. Overall, the trend in ROA for Wendy's Co indicates some variability in the company's ability to generate profits from its assets. Investors and stakeholders should consider the company's efficiency in asset utilization when analyzing its financial performance.
Peer comparison
Dec 31, 2023