Yum! Brands Inc (YUM)

Days of inventory on hand (DOH)

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
Inventory turnover 7.16
DOH days 50.99

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Based on the data provided, the days of inventory on hand (DOH) for Yum! Brands Inc experienced a notable change from the end of December 2022 to 50.99 days.

DOH is a financial ratio that measures the average number of days a company holds its inventory before selling it. A higher DOH value indicates that the company is taking longer to sell its inventory, which can tie up working capital and may suggest inefficiencies in inventory management.

For Yum! Brands Inc, a DOH of 50.99 days at the end of December 2022 suggests that the company is holding its inventory for just over 50 days before selling it. This could be due to various factors such as seasonality, changes in consumer demand, supply chain issues, or inventory management practices.

It is important for the company to monitor its inventory levels closely to ensure that they are aligned with sales demand, as excessive inventory holding can tie up resources and affect profitability. Additionally, a high DOH value may indicate a need for improved inventory management strategies to optimize working capital and operational efficiency.

Further analysis and comparison with industry benchmarks or historical data can provide more insights into the effectiveness of Yum! Brands Inc's inventory management practices and potential areas for improvement.


See also:

Yum! Brands Inc Average Inventory Processing Period (Quarterly Data)