WENDY’S COMPANY

FOOD INDUSTRY

KENNETH P. CAPILITAN
 WENDY’S COMPANY COMMON-SIZE
INCOME STATEMENT
For the Year Ended January 3 2021
------------------------------------------------------
NET SALES 100.0%
COST OF SALES 84.47%
GROSS MARGIN 15.53%
OPERATING EXPENSES 6.72%
EARNING BEFORE INTEREST

& TAXES (EBIT) 8.81%

INTEREST CHARGES 2.02%
EARNINGS AFTER TAXES (EAT) 6.79%
 WENDY’S COMPANY COMMON-SIZE BALANCE SHEET
For the Year January 3 2021
---------------------------------------------------------------------------------------
ASSET

CURRENT ASSET:
CASH & CASH EQUIVALENT---------------------------------------------- 6.1%
RESTRICTED CASH----------------------------------------------------------- 0.7%
ACCOUNT & NOTES RECEIVABLE, NET------------------------------- 2.2%
INVENTORIES------------------------------------------------------------------- 0.1%
PREPAID EXPENSE & OTHER CURRENT ASSET------------------- 1.8%
ADVERTISING FUND RESTRICTED ASSETS------------------------- 2.8%
TOTAL CURRENT ASSET--------------------------------------------- 13.7%
PROPERTIES------------------------------------------------------------------------- 18.2%
LEASE ASSETS--------------------------------------------------------------------- 20.4%
GOODWILL---------------------------------------------------------------------------- 14.9%
OTHER INTANGIBLE ASSETS-------------------------------------------------- 24.3%
INVESTMENT------------------------------------------------------------------------ 0.9%
NET INVESTMENT IN SALES-TYPE
& DIRECT FINANCING LEASES------------------------------------------------ 5.3%
OTHER ASSETS-------------------------------------------------------------------- 2.3%
TOTAL ASSETS---------------------------------------------------------- 100%

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
CURRENT PORTIONS OF LIABILITIES---------------------------------- 1.7%
ACCOUNT PAYABLE---------------------------------------------------------- 0.6%
ACCRUED EXPENSES & OTHER CURRENT LIABILITIES--------- 3.1%
ADVERTISING FUNDS RESTRICTED LIABILITIES------------------- 2.8%
TOTAL CURRENT LIABILITIES-------------------------------------- 8.2%
LONG-TERM LIABILITIES-------------------------------------------------------- 71.2%
DEFERRED INCOME TAX-------------------------------------------------------- 5.6%
DEFERRED FRANCHISE FEES------------------------------------------------ 1.8%
OTHER LIABILITIES---------------------------------------------------------------- 2.3%
TOTAL LIABILITIES------------------------------------------------------ 89.1%
TOTAL STOCKHOLDERS’ EQUITY--------------------------------- 10.9%
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY-------- 100%
 RATIO ANALYSIS SUMMARY FOR THE WENDY’S COMPANY
RATIO FORMULA

LIQUIDITY
CURRENT ASSET
1. CURRENT RATIO
CURRENT LIABILITIES

2. QUICK RATIO CURRENT ASSET-INVENTORIES

CURRENT LIABILITIES
ASSET MANAGEMENT
ACCOUNT RECEIVABLE
3. AVERAGE COLLECTION PERIOD CREDIT SALES/365

COST OF SALES
4. INVENTORY TURNOVER
AVERAGE INVENTORY

5. FIXED ASSET TURNOVER SALES

FIXED ASSETS

6. TOTAL ASSET TURNOVER SALES

TOTAL ASSET

FINANCIAL LEVERAGE MANAGEMENT

7. DEBT RATIO TOTAL DEBT

TOTAL ASSET

8. DEBT TO EQUITY TOTAL DEBT

TOTAL EQUITY

EARNING BEFORE INTEREST &

9. TIME INTEREST EARNED TAXES (EBIT)
INTEREST CHARGES

EBIT+LEASE PAYMENT
10. TIMES FIXED CHARGES INTEREST+LEASE PAYMENT+BEFORE TAX SINKING FUND
EARNED +PREFERRED STOCK DIVIDEND BEFORE TAX

PROFITABILITY
SALES-COST OF SALES
11. GROSS PROFIT MARGIN SALES

EARNING AFTER TAXES (EAT)

12. NET PROFIT MARGIN SALES

EARNING AFTER TAXES (EAT)

13. RETURN ON INVESTMENT
TOTAL ASSET

EARNING AFTER TAXES (EAT)

14. RETURN ON STOCKHOLDERS’ EQUITY STOCKHOLDER EQUITY

MARKET- BASED
MARKET PRICE PER SHARE
15. PRICE-TO-EARNING RATIO CURRENT EARNING PER SHARE

MARKET PRICE PER SHARE

16. MARKET-TO-BOOK RATIO
BOOK VALUE PER SHARE

DIVIDEND POLICY
DIVIDENDS PER SHARE
17. PAYOUT RATIO EARNINGS PER SHARE
18. DIVIDEND YIELD EXPECTED DIVIDEND PER SHARE
STOCK PRICE
 RATIO ANALYSIS SUMMARY FOR THE WENDY’S COMPANY
CALCULATION

LIQUIDITY

$687,623
1. = 1.66 TIMES
$413,308

$687,623-$4732 $682,891
2. = 1.65 TIMES
$413,308 $413,308
ASSET MANAGEMENT
$109,891 $109,891
3. = 23.13 DAYS
$$1,733,825/365 $4,750.2

$614,907 $614,907
4. ($4732+$3,891)2 = 142.6 TIMES
$4,311.5

$1,733,825
5. = 1.89 TIMES
$915,889

$1,733,825
6. $5,040,006 = 0.36 TIMES
FINANCIAL LEVERAGE MANAGEMENT
7. $4,490,410 = 89 PERCENT
$5,040,006

$4,490,410
8. = 817 PERCENT
$549,596

9. $152,759 = 4.37 TIMES

$34,963

$152,759+ …
10.
$34,963+ …
PROFITABILITY
$1,733,825-$614,907 $1,118,918
11. = 64.5 PERCENT
$1,733,825 $1,733,825

$117,832
12. $1,733,825 = 6.80 PERCENT

13. $117,832 = 2.34 PERCENT

$5,040,006

$117,832
14. = 21.44 PERCENT
$549,596
MARKET-BASED
15.

16.
DIVIDEND POLICY
17.

18.