Yum! Brands Inc (YUM)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,318,000	2,187,000	2,139,000	1,503,000	1,930,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-7,858,000	-8,876,000	-8,373,000	-7,891,000	-8,016,000
Return on total capital		—	—	—	—	—

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,318,000K ÷ ($—K + $-7,858,000K)
= —

Yum Brands Inc.'s return on total capital has fluctuated over the past five years. In 2019, the company achieved a high return on total capital of 74.51%. This was followed by a slight decrease in 2020 to 57.27%, indicating a temporary dip in capital efficiency. However, the company was able to recover and improve its return on total capital to 73.30% in 2021, showing resilience and effective capital management.

Subsequently, there was a further decline in 2022 to 72.84%, although still at a relatively high level. The most recent data for 2023 reflects a return on total capital of 69.01%, indicating a continued strong performance.

Overall, Yum Brands Inc. has demonstrated strong capital efficiency over the years, with fluctuations likely influenced by various internal and external factors affecting the company's operations and financial performance. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to generate returns relative to its total capital employed.