The Wendy’s Co (WEN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 396,294 | 403,479 | 365,824 | 292,415 | 255,194 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 259,352 | 309,779 | 465,720 | 436,405 | 549,596 |
| Return on total capital | 152.80% | 130.25% | 78.55% | 67.01% | 46.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $396,294K ÷ ($—K + $259,352K)
= 152.80%
The return on total capital for The Wendy's Co has shown a consistent and impressive growth trend over the years. Starting at 46.43% as of December 31, 2020, the return has steadily increased to 67.01% in 2021, further to 78.55% in 2022, significant growth to 130.25% in 2023, and reaching a high of 152.80% by December 31, 2024. This exceptional increase indicates that the company has been effectively utilizing its capital to generate profits and create value for its stakeholders. The upward trajectory of the return on total capital reflects a strong operational performance and efficient capital allocation by The Wendy's Co, which can be considered a positive indicator of financial health and sustainable growth prospects for the company.
Peer comparison
Dec 31, 2024