Yum! Brands Inc (YUM)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 616,000 | 457,000 | 404,000 | 652,000 | 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 |
| Short-term investments | US$ in thousands | 91,000 | 91,000 | 116,000 | 28,000 | 0 | 31,000 | 33,000 | 24,000 | 26,000 | 19,000 | — | — | — | — | — | — | 14,000 | — | 198,000 | — |
| Receivables | US$ in thousands | 830,000 | 763,000 | 733,000 | 686,000 | 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 |
| Total current liabilities | US$ in thousands | 1,269,000 | 1,186,000 | 1,136,000 | 1,188,000 | 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 |
| Quick ratio | 1.21 | 1.11 | 1.10 | 1.15 | 0.99 | 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 | 1.34 | 1.11 |
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, also known as the acid-test ratio, measures a company's ability to cover its short-term obligations with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by current liabilities.
Analyzing Yum! Brands Inc's quick ratio over the past few years, we can see fluctuations in the ratio, indicating changes in the company's liquidity position. The quick ratio ranged from a low of 0.64 to a high of 1.34 during the period under review.
A quick ratio of less than 1.0 may suggest that the company may have difficulty meeting its short-term obligations, as its liquid assets may not be sufficient to cover its current liabilities. Yum! Brands Inc's quick ratio fell below 1.0 multiple times, indicating potential liquidity challenges during those periods.
It is essential to note that the ideal quick ratio varies by industry, and comparing the company's quick ratio to industry peers would provide further insights into its liquidity position relative to its competitors.
Overall, monitoring Yum! Brands Inc's quick ratio over time can provide valuable information about the company's liquidity and its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024