Yum! Brands Inc (YUM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,597,000 | 1,325,000 | 1,575,000 | 904,000 | 1,294,000 |
| Total assets | US$ in thousands | 6,231,000 | 5,846,000 | 5,966,000 | 5,852,000 | 5,231,000 |
| ROA | 25.63% | 22.67% | 26.40% | 15.45% | 24.74% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,597,000K ÷ $6,231,000K
= 25.63%
Based on the data provided, Yum Brands Inc.'s return on assets (ROA) has displayed some fluctuations over the past five years. The ROA increased from 24.74% in 2019 to 26.40% in 2021, indicating improved efficiency in generating profits relative to its total assets. However, there was a slight decline to 22.67% in 2022 before rising again to 25.63% in 2023.
The company's ability to generate profit from its assets improved significantly in 2021 compared to 2020, showcasing better asset utilization. Although there was a minor dip in ROA in 2022, the subsequent increase in 2023 suggests that Yum Brands Inc. continues to effectively utilize its assets to generate returns for its stakeholders.
Overall, the trend in Yum Brands Inc.'s ROA demonstrates a general efficiency in asset management and profitability over the analyzed period.
Peer comparison
Dec 31, 2023