The Wendy’s Co (WEN)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,732,810 | 2,822,200 | 2,356,420 | 2,218,160 | 2,257,560 |
| Total stockholders’ equity | US$ in thousands | 309,779 | 465,720 | 436,405 | 549,596 | 516,359 |
| Debt-to-equity ratio | 8.82 | 6.06 | 5.40 | 4.04 | 4.37 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,732,810K ÷ $309,779K
= 8.82
The debt-to-equity ratio of Wendy's Co has shown an increasing trend over the past five years. In particular, the ratio increased from 5.37 in 2019 to 10.82 in 2023. This growth indicates that the company has been relying more on debt financing relative to equity in recent years.
A higher debt-to-equity ratio may suggest that Wendy's Co is taking on more debt to fund its operations or expansion, which could potentially lead to increased financial risk. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's leverage and ability to meet its financial obligations.
Peer comparison
Dec 31, 2023