Yum! Brands Inc (YUM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.87% | 53.79% | 53.68% | 53.92% | 53.76% | 52.96% | 52.51% | 52.63% | 53.19% | 68.93% | 68.72% | 66.93% | 64.05% | 63.73% | 65.31% | 68.32% | 71.56% | 70.85% | 69.31% | 67.01% |
| Operating profit margin | 32.76% | 32.40% | 31.76% | 31.71% | 31.96% | 31.45% | 31.32% | 31.68% | 32.49% | 32.92% | 32.86% | 30.57% | 26.59% | 27.97% | 28.69% | 31.16% | 34.48% | 38.91% | 39.87% | 39.06% |
| Pretax margin | 26.10% | 25.50% | 24.92% | 23.83% | 24.57% | 24.46% | 24.64% | 25.03% | 25.43% | 25.15% | 23.63% | 22.71% | 18.05% | 19.01% | 19.09% | 20.85% | 24.53% | 25.91% | 29.91% | 29.24% |
| Net profit margin | 22.57% | 21.32% | 20.31% | 17.67% | 19.37% | 19.13% | 22.17% | 24.80% | 23.92% | 24.50% | 21.21% | 19.52% | 15.99% | 18.92% | 18.78% | 19.89% | 23.12% | 20.88% | 24.29% | 24.61% |
Yum Brands Inc. has demonstrated strong and relatively stable profitability ratios over the past eight quarters. The company's gross profit margin has consistently remained above 74%, indicating efficient cost management and pricing strategies. Operating profit margins have also been healthy, with a range between 30% to 33%, showcasing effective control over operating expenses.
However, there is a slight decline in pretax margin from Q4 2022 to Q1 2023, which may indicate higher non-operating expenses or lower operating income during the period. Despite this, Yum Brands Inc. has maintained a respectable pretax margin above 23% in most quarters.
Net profit margins have shown some fluctuation, but overall, the company has delivered solid performance, with margins ranging from 17% to 24%. It is worth noting that the net profit margin in Q1 2023 dropped to 17.67%, which may require further investigation to determine the contributing factors.
Overall, based on the profitability ratios analysis, Yum Brands Inc. appears to have a consistent track record of generating profits relative to its revenue, with potential areas for improvement noted in the net profit margin for Q1 2023.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 25.63% | 24.79% | 24.28% | 21.33% | 22.67% | 22.22% | 25.58% | 28.34% | 26.40% | 24.57% | 23.58% | 20.67% | 15.45% | 17.49% | 16.07% | 18.32% | 24.74% | 22.79% | 28.65% | 28.90% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Yum Brands Inc., we observe the following trends in profitability ratios:
1. Operating return on assets (Operating ROA) has shown a consistently high performance over the past eight quarters, ranging from 35.73% to 38.22%. This metric indicates the efficiency of the company in generating operating income from its assets.
2. Return on assets (ROA) has been relatively stable, with values ranging from 21.33% to 25.63% over the same period. ROA reflects the company's ability to generate profits from its total assets.
3. Return on total capital has been relatively high, ranging from 67.65% to 73.90%. This ratio signifies the overall return generated by the company on its invested capital, including debt and equity.
4. Return on equity (ROE) data is missing from the provided table. ROE is a key metric that demonstrates how effectively the company is utilizing shareholder equity to generate profits.
Overall, the profitability ratios of Yum Brands Inc. showcase strong performance in terms of generating returns from both operating activities and total invested capital. However, further analysis is required to assess the company's ability to generate returns specifically for its shareholders, which would be captured by the missing ROE data.