Yum! Brands Inc (YUM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 616,000 | 512,000 | 367,000 | 486,000 | 730,000 |
| Short-term investments | US$ in thousands | 91,000 | 0 | 26,000 | — | — |
| Receivables | US$ in thousands | 830,000 | 757,000 | 680,000 | 646,000 | 569,000 |
| Total current liabilities | US$ in thousands | 1,269,000 | 1,277,000 | 1,665,000 | 1,415,000 | 1,675,000 |
| Quick ratio | 1.21 | 0.99 | 0.64 | 0.80 | 0.78 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($616,000K
+ $91,000K
+ $830,000K)
÷ $1,269,000K
= 1.21
The quick ratio of Yum! Brands Inc has shown variability over the years.
- In December 31, 2020, the quick ratio was 0.78, indicating that the company had $0.78 of liquid assets available to cover each $1 of current liabilities.
- By December 31, 2021, the quick ratio had slightly improved to 0.80, suggesting a marginal enhancement in the company's ability to meet short-term obligations.
- The quick ratio decreased to 0.64 as of December 31, 2022, potentially signaling some challenges in liquidity management or an increase in current liabilities relative to liquid assets.
- As of December 31, 2023, the quick ratio improved significantly to 0.99, indicating a more comfortable position in covering short-term obligations with liquid assets.
- By December 31, 2024, the quick ratio further improved to 1.21, showcasing a notable strengthening in the company's liquidity position and its ability to meet short-term liabilities promptly.
Overall, the trend in the quick ratio suggests fluctuations in Yum! Brands Inc's short-term liquidity position over the analyzed period. Investors and stakeholders may find these fluctuations informative when assessing the company's ability to manage its current obligations effectively.
Peer comparison
Dec 31, 2024