Yum! Brands Inc (YUM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,549,000 | 7,076,000 | 6,842,000 | 6,584,000 | 5,652,000 |
| Property, plant and equipment | US$ in thousands | 1,304,000 | 1,197,000 | 1,171,000 | 1,207,000 | 1,235,000 |
| Fixed asset turnover | 5.79 | 5.91 | 5.84 | 5.45 | 4.58 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,549,000K ÷ $1,304,000K
= 5.79
The fixed asset turnover ratio of Yum! Brands Inc has shown a consistent increasing trend over the past five years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets.
In 2020, the fixed asset turnover ratio was 4.58, and it has steadily increased to 5.79 as of December 31, 2024. This suggests that the company is utilizing its fixed assets more effectively to generate sales. A higher fixed asset turnover ratio generally indicates that the company is generating more revenue per dollar of investment in fixed assets.
The increasing trend in the fixed asset turnover ratio reflects positively on Yum! Brands Inc's operational efficiency and asset utilization. It indicates that the company is efficiently managing and utilizing its fixed assets to drive revenue growth.
Overall, the consistent improvement in the fixed asset turnover ratio of Yum! Brands Inc demonstrates the company's ability to optimize its asset base and generate higher sales relative to its investment in fixed assets over the years.
Peer comparison
Dec 31, 2024