Yum! Brands Inc (YUM)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 757,000 | 647,000 | 656,000 | 622,000 | 680,000 | 579,000 | 598,000 | 565,000 | 646,000 | 548,000 | 525,000 | 508,000 | 569,000 | 522,000 | 530,000 | 511,000 | 623,000 | 527,000 | 535,000 | 543,000 |
| 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 |
| Quick ratio | 1.01 | 0.89 | 0.76 | 0.64 | 0.64 | 0.81 | 0.85 | 0.71 | 0.80 | 1.14 | 0.69 | 0.72 | 0.78 | 1.05 | 1.20 | 1.11 | 0.80 | 1.23 | 0.66 | 0.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($512,000K
+ $24,000K
+ $757,000K)
÷ $1,277,000K
= 1.01
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. Yum Brands Inc.'s quick ratio has fluctuated over the past eight quarters, ranging from 0.72 to 1.28.
In Q4 2023, the quick ratio was 1.12, indicating that the company had $1.12 of liquid assets available to cover each dollar of its current liabilities. This suggests a healthy liquidity position for Yum Brands Inc., as having a quick ratio greater than 1 signifies that the company can comfortably meet its short-term financial obligations.
While the quick ratio dipped to 0.99 in Q1 2023, it remained above 1 in most quarters, except for Q4 2022. The significant increase to 1.28 in Q3 2022 suggests a strong ability to cover liabilities with liquid assets.
Overall, Yum Brands Inc. has generally maintained a quick ratio above 1, indicating a robust liquidity position and the ability to meet short-term obligations efficiently. However, management should continue to monitor and manage their liquidity effectively to navigate any potential financial challenges in the future.
Peer comparison
Dec 31, 2023