The Wendy’s Co (WEN)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,732,810 | 2,768,230 | 2,781,100 | 2,786,490 | 2,822,200 | 2,827,490 | 2,832,790 | 2,836,840 | 2,356,420 | 2,360,760 | 2,373,610 | 2,205,650 | 2,218,160 | 2,226,240 | 2,238,700 | 2,244,930 | 2,257,560 | 2,270,870 | 2,274,970 | 2,301,560 |
| Total assets | US$ in thousands | 5,182,830 | 5,290,450 | 5,353,750 | 5,408,030 | 5,499,340 | 5,524,990 | 5,515,580 | 5,563,100 | 5,101,390 | 5,156,950 | 5,166,870 | 4,956,670 | 5,040,010 | 4,963,020 | 5,070,360 | 4,981,720 | 4,994,530 | 5,136,220 | 5,163,890 | 5,185,660 |
| Debt-to-assets ratio | 0.53 | 0.52 | 0.52 | 0.52 | 0.51 | 0.51 | 0.51 | 0.51 | 0.46 | 0.46 | 0.46 | 0.44 | 0.44 | 0.45 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.44 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,732,810K ÷ $5,182,830K
= 0.53
The debt-to-assets ratio for Wendy's Co has been relatively stable over the past eight quarters, ranging from 0.62 to 0.65. This ratio indicates that, on average, the company finances approximately 62% to 65% of its assets through debt.
A ratio of 0.65 in Q4 2023 suggests that the company has increased its reliance on debt to fund its assets compared to the previous quarter. However, it is important to note that Wendy's Co has maintained a consistent level of debt relative to its assets over this period, which may indicate a deliberate and manageable debt management strategy.
Generally, a decreasing trend in the debt-to-assets ratio may signify improving financial health and lower risk, while an increasing trend could raise concerns about the company's leverage and ability to handle debt obligations. As such, further analysis of Wendy's Co's overall financial performance and debt management practices would provide greater insights into the implications of these ratios.
Peer comparison
Dec 31, 2023