Yum! Brands Inc (YUM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,609,000 | 1,609,000 | 1,532,000 | 1,689,000 | 1,527,000 |
| Total current liabilities | US$ in thousands | 1,277,000 | 1,665,000 | 1,415,000 | 1,675,000 | 1,541,000 |
| Current ratio | 1.26 | 0.97 | 1.08 | 1.01 | 0.99 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,609,000K ÷ $1,277,000K
= 1.26
The current ratio of Yum Brands Inc. has shown varying trends over the past five years. In 2021, the current ratio increased to 1.08 from 1.01 in 2020, indicating an improvement in the company's short-term liquidity position. However, in 2022, the current ratio decreased to 0.97, suggesting a potential strain on the company's ability to meet its short-term obligations.
The current ratio rebounded in 2023, reaching 1.26, which indicates that Yum Brands had a healthier liquidity position at the end of the year. A current ratio above 1 generally indicates that a company has more current assets than current liabilities, providing a buffer to meet its short-term financial obligations.
Overall, the trend in Yum Brands Inc.'s current ratio suggests fluctuations in its liquidity position over the years, with a notable improvement in 2023. It is essential for investors and stakeholders to monitor the current ratio closely to evaluate the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023