Yum! Brands Inc (YUM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,403,000 | 2,318,000 | 2,187,000 | 2,139,000 | 1,503,000 |
| Total assets | US$ in thousands | 6,727,000 | 6,231,000 | 5,846,000 | 5,966,000 | 5,852,000 |
| Operating ROA | 35.72% | 37.20% | 37.41% | 35.85% | 25.68% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,403,000K ÷ $6,727,000K
= 35.72%
Yum! Brands Inc's operating return on assets (operating ROA) has demonstrated a positive trend over the past five years, increasing from 25.68% as of December 31, 2020, to 35.72% as of December 31, 2024. This indicates that the company is generating a higher level of operating income relative to its total assets, reflecting improved operational efficiency and profitability.
The significant rise in operating ROA from 2020 to 2024 suggests that Yum! Brands Inc has been effectively utilizing its assets to generate operating income. The steady increase in this ratio indicates the company's ability to maximize its asset utilization and optimize operational performance over the years.
Overall, the upward trajectory of Yum! Brands Inc's operating ROA signifies a positive financial performance, showcasing the company's ability to generate higher returns on its assets, which is a key indicator of its operational effectiveness and efficiency.
Peer comparison
Dec 31, 2024