The Wendy’s Co (WEN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 396,294 | 392,283 | 400,283 | 404,485 | 403,479 | 395,992 | 388,116 | 366,431 | 343,221 | 313,049 | 281,027 | 281,483 | 294,158 | 319,507 | 333,107 | 305,118 | 284,150 | 251,252 | 242,115 | 262,744 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 259,352 | 259,853 | 273,753 | 293,654 | 309,779 | 342,564 | 391,115 | 419,557 | 465,720 | 437,379 | 422,863 | 454,535 | 436,405 | 542,754 | 570,356 | 520,665 | 549,596 | 521,535 | 483,983 | 451,075 |
| Return on total capital | 152.80% | 150.96% | 146.22% | 137.74% | 130.25% | 115.60% | 99.23% | 87.34% | 73.70% | 71.57% | 66.46% | 61.93% | 67.40% | 58.87% | 58.40% | 58.60% | 51.70% | 48.18% | 50.03% | 58.25% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 upward trend from March 31, 2020, to December 31, 2024. The ratio increased from 58.25% in March 2020 to 152.80% in December 2024. This indicates that the company has been generating a higher return on the total capital employed in its operations over the period under review.
The steady increase in the Return on Total Capital suggests that The Wendy's Co has been effectively utilizing its capital to generate profits and create value for its stakeholders. A rising return on total capital is generally seen as a positive indicator of financial performance and operational efficiency.
Overall, the increasing trend in The Wendy's Co's Return on Total Capital reflects the company's ability to generate higher returns relative to its invested capital, implying strong financial management and operational performance.
Peer comparison
Dec 31, 2024