Yum! Brands Inc (YUM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 512,000 | 367,000 | 486,000 | 730,000 | 605,000 |
| Short-term investments | US$ in thousands | 24,000 | 26,000 | — | — | 6,000 |
| Total current liabilities | US$ in thousands | 1,277,000 | 1,665,000 | 1,415,000 | 1,675,000 | 1,541,000 |
| Cash ratio | 0.42 | 0.24 | 0.34 | 0.44 | 0.40 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($512,000K
+ $24,000K)
÷ $1,277,000K
= 0.42
The cash ratio for Yum Brands Inc. has fluctuated over the past five years. In 2023, the cash ratio stands at 0.53, indicating that the company had $0.53 in cash and cash equivalents for every dollar of current liabilities. This represents an improvement from the previous year, where the ratio was 0.31. However, compared to 2021 and 2020, when the cash ratio was 0.44 and 0.51 respectively, the current year's ratio shows a relatively higher liquidity position.
It is worth noting that in 2019, the cash ratio was at 0.48, which is slightly lower than the current year's ratio. This suggests that Yum Brands Inc. has managed to strengthen its liquidity position over the years, reflecting a positive trend in managing its current obligations with available cash reserves.
Overall, the increasing trend in the cash ratio from 2021 to 2023 indicates that Yum Brands Inc. has improved its ability to cover short-term liabilities with cash and cash equivalents, which can be considered a favorable indicator of the company's liquidity position.
Peer comparison
Dec 31, 2023