The Wendy’s Co (WEN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,034,840 | 5,073,220 | 5,088,160 | 5,189,770 | 5,616,090 | 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 |
| 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 |
| Financial leverage ratio | 19.41 | 19.52 | 18.59 | 17.67 | 18.13 | 15.44 | 13.69 | 12.89 | 11.81 | 12.63 | 13.04 | 12.24 | 11.69 | 9.50 | 9.06 | 9.52 | 9.17 | 9.52 | 10.48 | 11.04 |
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 shown a fluctuating trend over the analyzed period. The ratio stood at 11.04 as of March 31, 2020, indicating that the company had a relatively high level of financial leverage at that time.
Subsequently, the ratio decreased to 9.17 by December 31, 2020, suggesting a reduction in the company's reliance on debt to finance its operations. However, the ratio increased again to 13.69 by June 30, 2023, and peaked at 19.52 by September 30, 2024.
This upward trend in the financial leverage ratio from 2023 to 2024 could indicate an increase in the company's debt levels relative to its equity, potentially signaling higher financial risk. Investors and stakeholders may need to closely monitor Wendy's financial leverage position to assess its ability to meet its debt obligations and manage financial risks effectively.
Peer comparison
Dec 31, 2024