Yum! Brands Inc (YUM)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,871,000	1,609,000	1,609,000	1,532,000	1,689,000
Total current liabilities	US$ in thousands	1,269,000	1,277,000	1,665,000	1,415,000	1,675,000
Current ratio		1.47	1.26	0.97	1.08	1.01

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,871,000K ÷ $1,269,000K
= 1.47

The current ratio of Yum! Brands Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the current ratio stood at 1.01, indicating that the company had just enough current assets to cover its current liabilities. By December 31, 2021, the ratio improved to 1.08, suggesting a slightly stronger liquidity position.

However, in December 31, 2022, there was a decline in the current ratio to 0.97, raising some concerns about the company's ability to meet its short-term obligations with its current assets. This decline may have been attributed to a decrease in current assets or an increase in current liabilities.

The trend reversed in December 31, 2023, with a notable increase in the current ratio to 1.26. This improvement indicates a healthier liquidity position, potentially due to increased current assets or reduced current liabilities.

By December 31, 2024, the current ratio further strengthened to 1.47, demonstrating that Yum! Brands Inc had significantly more current assets than current liabilities, implying a robust ability to cover its short-term obligations.

Overall, while the current ratio has shown some fluctuations over the years, the general trend indicates an improvement in Yum! Brands Inc's liquidity position, with the company having progressively enhanced its ability to meet its short-term financial obligations with its current assets.