Yum! Brands Inc (YUM)

Days of sales outstanding (DSO)

		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
Receivables turnover		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	8.98	10.36	10.30	10.26
DSO	days	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	40.63	35.22	35.42	35.58

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.35
= 39.05

To analyze Yum Brands Inc.'s days of sales outstanding (DSO) based on the data provided, we observe fluctuations in the DSO metric over the past eight quarters. In Q4 2023, the DSO stood at 39.05 days, representing an increase from the previous quarter's DSO of 33.45 days. This increase suggests that, on average, it took the company longer to collect its accounts receivable in Q4 2023.

Comparing Q4 2023 to the same quarter in the prior year, there was also a slight increase in DSO from 36.28 days to 39.05 days, indicating a relative deterioration in the company's collection efficiency over this period.

Furthermore, a broader trend analysis reveals that the DSO metric has shown variability over the past two years, with fluctuations observed in each quarter. Despite these fluctuations, the general trend indicates that the company has managed to keep the DSO metric within a relatively stable range between approximately 31 to 39 days.

Overall, while the recent increase in DSO in Q4 2023 may warrant further investigation into the company's accounts receivable management and collection processes, it is essential to consider the historical variability in the DSO metric and monitor future developments to assess any sustained impacts on Yum Brands Inc.'s financial performance and operational efficiency.