The Wendy’s Co (WEN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 16.73 | 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 | 9.67 | 7.91 | 7.97 | 8.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,182,830K ÷ $309,779K
= 16.73
Wendy's Co's financial leverage ratio has shown an increasing trend over the past eight quarters, starting at 11.81 in Q4 2022 and reaching 16.73 in Q4 2023. This indicates that the company has been relying more on debt financing compared to equity to support its operations and growth. The gradual increase in the financial leverage ratio suggests that Wendy's Co may be taking on more debt to finance its expansion or other strategic initiatives. It is important for investors and stakeholders to closely monitor this ratio to ensure that the company's debt levels remain manageable and sustainable in the long term.
Peer comparison
Dec 31, 2023