The Wendy’s Co (WEN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 309,779 | 465,720 | 436,405 | 549,596 | 516,359 |
| ROE | 66.00% | 38.09% | 45.92% | 21.44% | 26.52% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $204,440K ÷ $309,779K
= 66.00%
Wendy's Co has demonstrated a fluctuating trend in its return on equity (ROE) over the past five years. The ROE has shown an upward trajectory from 26.52% in 2019 to 66.00% in 2023, reflecting a significant improvement in the company's ability to generate profit from shareholder equity. This increase indicates a positive performance increment over the years, with the ROE more than doubling during this period. It suggests that Wendy's Co has been effective in utilizing its equity to generate earnings for its shareholders, implying improved efficiency and profitability in its operations. The spike in ROE to 66.00% in 2023 may signify increased profitability and a stronger financial position for the company compared to previous years. However, it is important to assess the underlying factors driving this growth to ensure its sustainability and profitability in the long run.
Peer comparison
Dec 31, 2023