Yum! Brands Inc (YUM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,403,000 | 2,355,000 | 2,349,000 | 2,315,000 | 2,318,000 | 2,287,000 | 2,220,000 | 2,201,000 | 2,187,000 | 2,111,000 | 2,092,000 | 2,105,000 | 2,139,000 | 2,119,000 | 2,063,000 | 1,796,000 | 1,503,000 | 1,567,000 | 1,576,000 | 1,747,000 |
| Total assets | US$ in thousands | 6,727,000 | 6,461,000 | 6,395,000 | 6,224,000 | 6,231,000 | 6,071,000 | 5,848,000 | 5,749,000 | 5,846,000 | 5,779,000 | 5,790,000 | 5,816,000 | 5,966,000 | 6,419,000 | 5,649,000 | 5,550,000 | 5,852,000 | 6,061,000 | 6,421,000 | 6,085,000 |
| Operating ROA | 35.72% | 36.45% | 36.73% | 37.19% | 37.20% | 37.67% | 37.96% | 38.28% | 37.41% | 36.53% | 36.13% | 36.19% | 35.85% | 33.01% | 36.52% | 32.36% | 25.68% | 25.85% | 24.54% | 28.71% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,403,000K ÷ $6,727,000K
= 35.72%
Yum! Brands Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the analyzed period from March 31, 2020, to December 31, 2024. The operating ROA ranged from a low of 24.54% in June 30, 2020 to a high of 38.28% in March 31, 2023.
The operating ROA reached its peak at 38.28% in March 31, 2023, indicating that the company generated $0.3828 in operating income for every dollar of assets held during that period. This suggests Yum! Brands Inc effectively utilized its assets to generate operating profits.
However, in the later periods leading up to December 31, 2024, the operating ROA started to decline steadily, ending at 35.72% in December 31, 2024. This may imply a decrease in operating efficiency or profitability relative to the earlier periods.
Overall, despite some fluctuations, Yum! Brands Inc maintained a relatively high operating ROA during the analyzed period, indicating efficient management of assets and operations to generate operating profits. It would be important for the company to further monitor its operating ROA to ensure sustained profitability and efficiency in asset utilization.
Peer comparison
Dec 31, 2024