Yum! Brands Inc (YUM)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	50.99	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	40.13	38.56	37.66	35.62	39.05	33.45	34.25	32.71	36.28	31.48	32.68	31.03	35.81	31.07	30.52	31.56	36.75	34.00	35.21	33.27
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	40.13	38.56	37.66	35.62	39.05	33.45	34.25	32.71	87.27	31.48	32.68	31.03	35.81	31.07	30.52	31.56	36.75	34.00	35.21	33.27

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 40.13 – —
= 40.13

The cash conversion cycle of Yum! Brands Inc has shown some fluctuations over the past few years. It is a measure of how long it takes for the company to convert its investments in inventory into cash flows from sales.

Looking at the data provided, we can see that the cash conversion cycle has varied between a low of 30.52 days on June 30, 2021, and a high of 87.27 days on December 31, 2022. Generally, a shorter cash conversion cycle is considered more favorable as it indicates that the company is able to generate cash quickly from its operations.

The company's efficiency in managing its inventory, receivables, and payables has a direct impact on the cash conversion cycle. Each component of the cash conversion cycle - days inventory outstanding, days sales outstanding, and days payable outstanding - plays a role in determining the overall effectiveness of the company in managing its working capital and cash flows.

It is important for Yum! Brands Inc to continue monitoring and optimizing its cash conversion cycle to ensure that it remains efficient and effective in generating cash from its operations. By analyzing the trends and drivers behind the fluctuations in the cash conversion cycle, the company can identify areas for improvement and implement strategic initiatives to enhance its working capital management.