Yum! Brands Inc (YUM)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,597,000 | 5,461,000 | 5,513,000 | 5,571,000 |
| Total current assets | US$ in thousands | 1,609,000 | 1,705,000 | 1,515,000 | 1,546,000 | 1,609,000 | 1,595,000 | 1,429,000 | 1,356,000 | 1,532,000 | 2,062,000 | 1,514,000 | 1,454,000 | 1,689,000 | 2,030,000 | 2,398,000 | 1,991,000 | 1,527,000 | 1,548,000 | 1,122,000 | 1,186,000 |
| Total current liabilities | US$ in thousands | 1,277,000 | 1,504,000 | 1,487,000 | 1,555,000 | 1,665,000 | 1,244,000 | 1,183,000 | 1,302,000 | 1,415,000 | 1,355,000 | 1,558,000 | 1,479,000 | 1,675,000 | 1,553,000 | 1,475,000 | 1,500,000 | 1,541,000 | 987,000 | 1,186,000 | 1,327,000 |
| Working capital turnover | 21.31 | 35.12 | 249.68 | — | — | 19.13 | 27.15 | 123.06 | 56.27 | 9.10 | — | — | 403.71 | 11.75 | 5.95 | 11.42 | — | 9.73 | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,076,000K ÷ ($1,609,000K – $1,277,000K)
= 21.31
Yum Brands Inc.'s working capital turnover ratio fluctuated significantly over the past eight quarters. The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales revenue.
In Q4 2023, the working capital turnover ratio stood at 21.31, showing a decrease from the previous quarter's ratio of 35.12. This may indicate a decrease in the efficiency of Yum Brands in utilizing its working capital to generate sales revenue.
Q3 2023 saw a significant increase in the working capital turnover ratio to 35.12 compared to Q2 2023 where the ratio was notably high at 249.68, suggesting a considerable improvement in the utilization of working capital during that period.
However, the lack of data for Q1 2023 complicates the trend analysis for that period. Looking at the previous quarters, the company demonstrated varying levels of efficiency in managing its working capital to generate revenue.
Comparing the Q4 results across years, we can see a slight improvement from Q4 2022, where the working capital turnover ratio was 19.13. Q1 2022 and Q2 2022 also showed similar trends in the efficiency of working capital utilization.
Overall, Yum Brands Inc. experienced fluctuations in its working capital turnover ratio during the analyzed period, suggesting variability in how effectively the company manages its working capital to drive sales revenue.
Peer comparison
Dec 31, 2023