The Wendy’s Co (WEN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 259,352 | 309,779 | 465,720 | 436,405 | 549,596 |
| ROE | 74.94% | 66.00% | 38.09% | 45.92% | 21.44% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $194,357K ÷ $259,352K
= 74.94%
The return on equity (ROE) for The Wendy's Co has shown a positive trend over the years, increasing from 21.44% in 2020 to 74.94% in 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate higher profits. The significant rise in ROE from 2020 to 2024 suggests improved profitability and efficiency in managing the company's assets and liabilities. The ROE of 66.00% in 2023 and 74.94% in 2024 are particularly noteworthy, indicating strong performance and a high return for shareholders. Overall, the increasing trend in ROE reflects positively on The Wendy's Co's financial health and management efficiency during the period under review.
Peer comparison
Dec 31, 2024