Yum! Brands Inc (YUM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,486,000 | 1,597,000 | 1,325,000 | 1,575,000 | 904,000 |
| Total assets | US$ in thousands | 6,727,000 | 6,231,000 | 5,846,000 | 5,966,000 | 5,852,000 |
| ROA | 22.09% | 25.63% | 22.67% | 26.40% | 15.45% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,486,000K ÷ $6,727,000K
= 22.09%
Based on the provided data, Yum! Brands Inc has shown a positive trend in its return on assets (ROA) over the past five years. The ROA increased from 15.45% on December 31, 2020, to 26.40% on December 31, 2021, indicating a significant improvement in the company's ability to generate profits from its assets.
Although there was a slight decline in ROA in 2022 to 22.67%, the metric bounced back in the following years, reaching 25.63% on December 31, 2023, and 22.09% on December 31, 2024. Overall, Yum! Brands Inc has maintained a relatively strong ROA performance throughout the period, reflecting efficient asset utilization to generate profits for the company.
The fluctuation in ROA over the years may suggest changes in the company's asset management efficiency, profitability, or the overall economic environment affecting its operations. This metric is crucial for investors and stakeholders as it provides insights into how well the company is utilizing its assets to generate earnings. Yum! Brands Inc's consistent performance in ROA demonstrates its ability to generate solid returns relative to its asset base.
Peer comparison
Dec 31, 2024