Yum! Brands Inc (YUM)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	7,549,000	7,223,000	7,105,000	7,029,000	7,076,000	7,059,000	6,991,000	6,940,000	6,842,000	6,713,000	6,679,000	6,645,000	6,584,000	6,437,000	6,279,000	5,875,000	5,652,000	5,603,000	5,494,000	5,606,000
Receivables	US$ in thousands	830,000	763,000	733,000	686,000	757,000	647,000	656,000	622,000	680,000	579,000	598,000	565,000	646,000	548,000	525,000	508,000	569,000	522,000	530,000	511,000
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,549,000K ÷ $830,000K
= 9.10

The receivables turnover ratio of Yum! Brands Inc has fluctuated over the past few years, ranging from a low of 9.10 in December 2024 to a high of 11.96 in June 2021. This ratio measures how efficiently the company is able to collect outstanding receivables from its customers.

A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is generally a positive sign as it implies efficient credit and collection policies. On the other hand, a lower ratio suggests that the company may be facing challenges in collecting payments from customers in a timely manner.

Overall, Yum! Brands Inc has shown relatively stable performance in terms of receivables turnover, with the ratio hovering around 10 to 11 for most of the period analyzed. It is important for the company to maintain a healthy balance in its receivables turnover ratio to ensure effective management of its accounts receivable and optimize its cash flow operations.