Yum! Brands Inc (YUM)
Working capital 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 |
| Total current assets | US$ in thousands | 1,871,000 | 1,625,000 | 1,635,000 | 1,774,000 | 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 |
| Total current liabilities | US$ in thousands | 1,269,000 | 1,186,000 | 1,136,000 | 1,188,000 | 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 |
| Working capital turnover | 12.54 | 16.45 | 14.24 | 11.99 | 21.31 | 35.12 | 249.68 | — | — | 19.13 | 27.15 | 123.06 | 56.27 | 9.10 | — | — | 403.71 | 11.75 | 5.95 | 11.42 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,549,000K ÷ ($1,871,000K – $1,269,000K)
= 12.54
Yum! Brands Inc's working capital turnover has exhibited significant fluctuations over the past few years. The ratio stood at 11.42 on March 31, 2020, indicating that the company turned over its working capital approximately 11.42 times during that period. There was a noticeable decline in the ratio to 5.95 by June 30, 2020, suggesting a decrease in the efficiency of utilizing working capital.
The ratio experienced a sharp increase to 403.71 by December 31, 2020, which could be an anomaly or potentially driven by certain unique circumstances within the business. The ratios for the subsequent periods were not available until September 30, 2021, when it stood at 9.10, indicating a more reasonable level of working capital turnover.
The working capital turnover ratio continued to fluctuate throughout the following periods, with notable peaks and troughs. Notably, the ratio spiked to 249.68 by June 30, 2023, suggesting a substantial improvement in working capital efficiency during that period. Overall, the working capital turnover ratio for Yum! Brands Inc has displayed variability, potentially influenced by fluctuations in operational efficiency and changes in the company's working capital management strategies.
Peer comparison
Dec 31, 2024