Yum! Brands Inc (YUM)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.47 | 1.26 | 0.97 | 1.08 | 1.01 |
| Quick ratio | 1.21 | 0.99 | 0.64 | 0.80 | 0.78 |
| Cash ratio | 0.56 | 0.40 | 0.24 | 0.34 | 0.44 |
The current ratio of Yum! Brands Inc has shown some fluctuation over the years, starting at 1.01 in 2020, increasing to 1.47 by the end of 2024. This indicates the company's ability to cover its short-term obligations with its current assets has improved over the years.
In terms of the quick ratio, Yum! Brands Inc's ability to meet its short-term liabilities with its most liquid assets remained relatively stable, ranging from 0.64 in 2022 to 1.21 in 2024. This suggests the company has a moderate ability to meet its short-term obligations without relying on selling inventory.
The cash ratio of Yum! Brands Inc, which measures its ability to cover current liabilities with its cash and cash equivalents, fluctuated between 0.24 to 0.56 over the period from 2020 to 2024. This indicates the company's liquidity position in terms of cash has varied, showing both weaknesses and strengths in managing short-term obligations.
Overall, while Yum! Brands Inc has shown improvement in its current ratio over the years, the company's quick and cash ratios have displayed some variability, reflecting different aspects of its liquidity management.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 40.13 | 39.05 | 87.27 | 72.76 | 36.75 |
The cash conversion cycle of Yum! Brands Inc has fluctuated over the past five years. It increased from 36.75 days as of December 31, 2020, to 72.76 days by December 31, 2021, signifying a significant lengthening of the cycle. This trend continued in 2022, with the cycle further elongating to 87.27 days. However, by December 31, 2023, the cycle decreased to 39.05 days, showing an improvement in the management of cash flow. In the most recent year, as of December 31, 2024, the cash conversion cycle slightly increased to 40.13 days, but it remained lower compared to the peak in 2022. Overall, monitoring and managing the cash conversion cycle is crucial for Yum! Brands to optimize operational efficiency and liquidity.