Yum! Brands Inc (YUM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-7,858,000	-8,190,000	-8,436,000	-8,774,000	-8,876,000	-8,542,000	-8,568,000	-8,491,000	-8,373,000	-7,855,000	-7,893,000	-7,912,000	-7,891,000	-7,919,000	-8,108,000	-8,229,000	-8,016,000	-8,097,000	-7,994,000	-7,904,000
Return on total capital		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

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

Yum Brands Inc.'s return on total capital has shown consistent positive performance over the past eight quarters. The company has demonstrated a strong ability to generate returns on the capital invested in its operations, ranging from 67.65% to 73.90%. This indicates that Yum Brands is effectively utilizing its capital to generate profits.

The return on total capital has been consistently above 67%, reflecting the company's efficient use of both debt and equity to generate earnings. The higher ratios in Q1 2023 and Q4 2022 suggest that Yum Brands has been particularly successful in maximizing returns in those quarters.

Overall, Yum Brands Inc.'s stable and high return on total capital indicates strong financial health and efficient capital management, which is a positive indicator for investors and stakeholders.