Yum! Brands Inc (YUM)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,264,000 | 3,164,000 | 3,082,000 | 3,037,000 | 2,474,000 |
| Inventory | US$ in thousands | -24,000 | 442,000 | 312,000 | — | -6,000 |
| Inventory turnover | — | 7.16 | 9.88 | — | — |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,264,000K ÷ $-24,000K
= —
To calculate the inventory turnover for Yum Brands Inc., the formula is:
Inventory Turnover = Cost of Goods Sold / Average Inventory
Unfortunately, without the specific data for the Cost of Goods Sold and Inventory for each year provided in the table, it is not possible to compute the inventory turnover ratio for Yum Brands Inc. for the given years.
The inventory turnover ratio is a crucial financial metric that measures the efficiency of a company in managing its inventory levels and generating sales from its inventory. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally favorable as it signifies efficient operations. Conversely, a lower inventory turnover ratio may indicate overstocking or slow-moving inventory, which can lead to higher carrying costs and potentially lower profitability.
Without the necessary data points, a detailed analysis of Yum Brands Inc.'s inventory turnover over the specified years is not feasible. It is recommended to obtain the specific figures for Cost of Goods Sold and Inventory to calculate and interpret the inventory turnover ratio accurately.
Peer comparison
Dec 31, 2023