Yum! Brands Inc (YUM)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		9.10	9.35	10.06	10.19	9.93
DSO	days	40.13	39.05	36.28	35.81	36.75

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.10
= 40.13

Based on the provided data, Yum! Brands Inc's Days Sales Outstanding (DSO) has shown a slight fluctuation over the past five years. It decreased from 36.75 days as of December 31, 2020, to 35.81 days as of December 31, 2021, indicating an improvement in the company's collection efficiency.

However, in the following years, there was a gradual increase in DSO, reaching 39.05 days as of December 31, 2023, and further increasing to 40.13 days by December 31, 2024. These increases suggest that Yum! Brands Inc may be experiencing challenges in collecting payments from customers within a reasonable timeframe.

Overall, monitoring DSO is crucial as it reflects the average number of days a company takes to collect revenue after a sale is made. A higher DSO can indicate potential liquidity issues or inefficiencies in the company's accounts receivable management, while a lower DSO is typically viewed more favorably as it signifies faster cash conversion.