Yum! Brands Inc (YUM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 512,000 | 656,000 | 437,000 | 349,000 | 367,000 | 410,000 | 412,000 | 365,000 | 486,000 | 1,001,000 | 552,000 | 561,000 | 730,000 | 1,110,000 | 1,243,000 | 1,154,000 | 605,000 | 691,000 | 252,000 | 278,000 |
| Short-term investments | US$ in thousands | 24,000 | 31,000 | 33,000 | 24,000 | 26,000 | 19,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.42 | 0.46 | 0.32 | 0.24 | 0.24 | 0.34 | 0.35 | 0.28 | 0.34 | 0.74 | 0.35 | 0.38 | 0.44 | 0.71 | 0.84 | 0.77 | 0.39 | 0.70 | 0.21 | 0.21 |
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 measures a company's ability to cover its short-term obligations with its available cash and equivalents. A higher cash ratio indicates a stronger ability to meet short-term liabilities.
Yum Brands Inc.'s cash ratio fluctuated over the past eight quarters, ranging from 0.31 to 0.82. In Q4 2023, the cash ratio was 0.53, indicating that the company had $0.53 of cash and equivalents for every $1 of current liabilities. This was lower compared to the previous quarter (Q3 2023), where the ratio was 0.70.
The highest cash ratio observed was in Q3 2022 at 0.82, suggesting a peak ability to cover short-term obligations with available cash. Conversely, the lowest cash ratio was in Q4 2022 at 0.31, signaling a relatively weaker position in terms of immediate liquidity.
Overall, while the cash ratio has varied, it is essential for Yum Brands Inc. to maintain a healthy balance between cash holdings and short-term liabilities to ensure financial stability and flexibility in meeting its financial obligations.
Peer comparison
Dec 31, 2023