Yum! Brands Inc (YUM)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 1,930,000 | 2,125,000 | 2,198,000 | 2,176,000 |
| Total assets | US$ in thousands | 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 | 5,231,000 | 5,003,000 | 4,674,000 | 4,744,000 |
| Operating ROA | 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% | 36.90% | 42.47% | 47.03% | 45.87% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,318,000K ÷ $6,231,000K
= 37.20%
Yum Brands Inc.'s operating return on assets (operating ROA) has shown a consistent and positive trend over the past eight quarters, ranging from 35.73% in Q2 2022 to 38.22% in Q1 2023. This indicates that the company is efficiently generating operating income relative to its total assets. The operating ROA peaked in Q1 2023 at 38.22%, reflecting the company's ability to effectively utilize its assets to generate operating profits during that period.
Although there was a slight decrease in Q4 2023 to 36.96% from the previous quarter, the operating ROA remains at a relatively high level compared to the historical data. This suggests that Yum Brands Inc. continues to effectively manage its assets to generate strong operating returns, despite a minor dip in the most recent quarter.
Overall, the consistent upward trend in Yum Brands Inc.'s operating ROA indicates efficient asset utilization and effective management of operating income, which are positive signals for investors and stakeholders regarding the company's operational performance and financial health.
Peer comparison
Dec 31, 2023