Yum! Brands Inc (YUM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,076,000 | 6,842,000 | 6,584,000 | 5,652,000 | 5,597,000 |
| Property, plant and equipment | US$ in thousands | 1,197,000 | 1,171,000 | 1,207,000 | 1,235,000 | 1,170,000 |
| Fixed asset turnover | 5.91 | 5.84 | 5.45 | 4.58 | 4.78 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,076,000K ÷ $1,197,000K
= 5.91
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Yum Brands Inc., the fixed asset turnover has been gradually increasing over the past five years, indicating improved efficiency in generating sales from its fixed assets.
The company achieved a fixed asset turnover of 5.91 in 2023, compared to 5.84 in 2022, 5.45 in 2021, 4.58 in 2020, and 4.78 in 2019. This trend suggests that Yum Brands Inc. has been able to generate more revenue from its fixed assets each year, reflecting effective management of its asset base.
A higher fixed asset turnover ratio generally indicates better operational performance and asset utilization, as the company is generating more sales with fewer fixed assets. Yum Brands Inc.'s consistent increase in fixed asset turnover over the years reflects a positive trend in its operational efficiency and suggests that the company is effectively leveraging its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023