Yum! Brands Inc (YUM)

Days of sales outstanding (DSO)

		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
Receivables turnover		9.10	9.47	9.69	10.25	9.35	10.91	10.66	11.16	10.06	11.59	11.17	11.76	10.19	11.75	11.96	11.56	9.93	10.73	10.37	10.97
DSO	days	40.13	38.56	37.66	35.62	39.05	33.45	34.25	32.71	36.28	31.48	32.68	31.03	35.81	31.07	30.52	31.56	36.75	34.00	35.21	33.27

December 31, 2024 calculation

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

Days of Sales Outstanding (DSO) is a financial ratio that indicates how efficiently a company collects its accounts receivable. Lower DSO values are generally preferred as they reflect quicker collection of receivables, which can improve cash flow and working capital management.

Analyzing the DSO trend of Yum! Brands Inc from March 31, 2020, to December 31, 2024, we can see fluctuations in the metric. The DSO ranges from a low of 30.52 days on June 30, 2021, to a high of 40.13 days on December 31, 2024. Notably, there is an overall increasing trend in DSO over the period, with certain fluctuations.

The average DSO over this period is around 34 days, indicating that it takes Yum! Brands approximately 34 days to collect its accounts receivable on average. A key observation is the higher DSO values in the later periods, suggesting potential challenges in collecting receivables efficiently.

It is important for Yum! Brands to monitor and manage its DSO effectively to ensure timely collection of receivables and maintain healthy cash flow. A continued increase in DSO could signal issues with credit policies, customer payment behavior, or collection processes that may require attention to optimize working capital management.