The Wendy’s Co (WEN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 194,357 | 204,440 | 177,370 | 200,392 | 117,832 |
| Total assets | US$ in thousands | 5,034,840 | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 |
| ROA | 3.86% | 3.94% | 3.23% | 3.93% | 2.34% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $194,357K ÷ $5,034,840K
= 3.86%
The Return on Assets (ROA) of The Wendy’s Co has shown a fluctuating trend over the past five years, starting at 2.34% on December 31, 2020 and peaking at 3.94% on December 31, 2023. The ROA for December 31, 2021 was 3.93%, slightly lower than the peak year. However, there was a decrease in ROA to 3.23% on December 31, 2022, before slightly rebounding to 3.86% on December 31, 2024.
Overall, the company's ROA has displayed a generally positive trend, indicating that management has been effective in generating profits from its assets. The upward movement in ROA suggests that the company has been efficient in utilizing its assets to increase profitability. However, the slight decline in 2022 should be further investigated to understand the factors contributing to this dip and ensure sustained improvement in the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024