Yum! Brands Inc (YUM)
Working capital 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 |
| Total current assets | US$ in thousands | 1,609,000 | 1,609,000 | 1,532,000 | 1,689,000 | 1,527,000 |
| Total current liabilities | US$ in thousands | 1,277,000 | 1,665,000 | 1,415,000 | 1,675,000 | 1,541,000 |
| Working capital turnover | 21.31 | — | 56.27 | 403.71 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,076,000K ÷ ($1,609,000K – $1,277,000K)
= 21.31
Based on the data provided for Yum Brands Inc., the working capital turnover ratio shows a significant fluctuation over the years.
In 2023, the working capital turnover was 21.31, indicating that the company effectively generated $21.31 in revenue for each dollar of working capital invested. This demonstrates a notable decrease from the previous year's data, where the ratio was not available.
Moving back to 2021, Yum Brands Inc. displayed a remarkable working capital turnover of 56.27, revealing a strong efficiency in utilizing its working capital to generate sales. In 2020, the ratio surged to a significantly higher level of 403.71, showcasing an exceptional efficiency in utilizing the working capital to drive revenue generation.
Unfortunately, data is not available for 2019, so we lack a comprehensive view of the trend over the years. However, it is clear that the working capital turnover ratio for Yum Brands Inc. has experienced notable fluctuations, potentially indicating varying efficiencies in managing working capital and generating revenue. Further analysis would be necessary to understand the reasons behind these fluctuations and assess the overall effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2023