The Wendy’s Co (WEN)

Solvency ratios

	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
Debt-to-assets ratio	0.53	0.52	0.52	0.52	0.51	0.51	0.51	0.51	0.46	0.46	0.46	0.44	0.44	0.45	0.44	0.45	0.45	0.44	0.44	0.44
Debt-to-capital ratio	0.90	0.89	0.88	0.87	0.86	0.87	0.87	0.86	0.84	0.81	0.81	0.81	0.80	0.81	0.82	0.83	0.81	0.78	0.78	0.78
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
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

Wendy's Co's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight increase from 0.62 in Q3 2022 to 0.65 in Q4 2023, indicating that the company relies more on debt financing relative to its total assets.

The debt-to-capital ratio has also increased gradually over the quarters, reaching 0.92 in Q4 2023. This indicates that a higher percentage of Wendy's capital structure is comprised of debt.

The debt-to-equity ratio has shown fluctuations but overall an increasing trend, reaching 10.82 in Q4 2023. This suggests that the company is financing a larger portion of its operations with debt relative to equity, which may pose higher financial risk.

The financial leverage ratio has been consistently increasing over the quarters, reaching 16.73 in Q4 2023. This indicates that Wendy's Co relies more on debt financing compared to equity, which can amplify both gains and losses.

Overall, based on the solvency ratios, Wendy's Co's financial leverage has been increasing, reflecting a higher level of debt in its capital structure. Investors and creditors should closely monitor these trends to assess the company's ability to manage its debt obligations effectively.

Coverage ratios

	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
Interest coverage	3.25	3.15	3.06	2.94	2.99	3.03	3.00	3.22	3.20	3.08	3.01	2.58	2.30	2.19	2.21	2.32	2.48	2.36	6.10	6.07

Wendy's Co's interest coverage ratio has remained relatively stable over the past eight quarters, ranging from a low of 2.93 to a high of 3.16. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt with its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

With Wendy's Co consistently maintaining an interest coverage ratio above 2, it suggests that the company has a healthy level of operating income relative to its interest obligations. This indicates that Wendy's Co has a comfortable cushion to meet its interest payments, reducing the risk of potential financial distress. However, a relatively stable ratio may also indicate that the company is not aggressively expanding its debt levels nor significantly increasing its interest payments over the period. Monitoring the trajectory of the interest coverage ratio can provide insights into Wendy's Co's financial health and its ability to service its debt obligations.