Yum! Brands Inc (YUM)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-7,858,000K)
= —

The debt-to-capital ratio of Yum Brands Inc. has shown fluctuations over the past eight quarters, ranging from 3.35 to 3.98. The ratio indicates the proportion of the company's capital structure that is financed by debt. A higher ratio suggests that a larger portion of the company's capital is derived from debt rather than equity.

The trend observed in Yum Brands Inc.'s debt-to-capital ratio fluctuates within a relatively narrow range, indicating a consistent reliance on debt financing to support its operations and growth initiatives. Despite some variability, the company has maintained a level of around 3.5 to 4 in recent quarters.

It is important to note that a debt-to-capital ratio above 1 signifies that the company has more debt than equity in its capital structure. Yum Brands Inc.'s ratios over the past eight quarters consistently exceed 1, indicating that debt plays a significant role in funding its operations. This may entail higher financial leverage and associated risks but can also provide tax advantages and allow for strategic investments.

Overall, a sustained observation of Yum Brands Inc.'s debt-to-capital ratio reveals a consistent reliance on debt financing, which is a key aspect to consider in evaluating the company's financial health and risk profile.