The Wendy’s Co (WEN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 516,359 | 649,591 | 648,048 | 640,694 |
| Debt-to-equity ratio | 8.82 | 8.08 | 7.11 | 6.64 | 6.06 | 6.46 | 6.70 | 6.24 | 5.40 | 4.35 | 4.16 | 4.24 | 4.04 | 4.27 | 4.63 | 4.98 | 4.37 | 3.50 | 3.51 | 3.59 |
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 been on an increasing trend over the past eight quarters, reflecting a higher level of leverage in the company's capital structure. The ratio increased from 7.39 in Q4 2022 to 10.82 in Q4 2023, indicating that the company's debt levels relative to equity have been rising.
This suggests that Wendy's Co has been relying more on debt financing as compared to equity financing. A high debt-to-equity ratio may indicate that the company is more leveraged and potentially carries a higher financial risk. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to manage its debt obligations and sustain its operations in the long term.
Peer comparison
Dec 31, 2023