The Wendy’s Co (WEN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,034,840 | 5,182,830 | 5,499,340 | 5,101,390 | 5,040,010 |
| Total stockholders’ equity | US$ in thousands | 259,352 | 309,779 | 465,720 | 436,405 | 549,596 |
| Financial leverage ratio | 19.41 | 16.73 | 11.81 | 11.69 | 9.17 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,034,840K ÷ $259,352K
= 19.41
The financial leverage ratio of The Wendy's Co has been on an increasing trend over the years, starting at 9.17 in December 2020 and reaching 19.41 by December 2024. This indicates that the company has been relying more on debt to finance its operations and investments. The significant increase in the ratio from 2023 to 2024, from 16.73 to 19.41, suggests a notable escalation in the company's debt relative to its equity. This could pose risks in terms of financial stability and debt servicing capability, as higher leverage levels typically indicate higher financial risk. Management should closely monitor and manage the company's debt levels to ensure long-term financial health and sustainability.
Peer comparison
Dec 31, 2024