Yum! Brands Inc (YUM)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,403,000 | 2,318,000 | 2,187,000 | 2,139,000 | 1,503,000 |
| Interest expense | US$ in thousands | 542,000 | 604,000 | 561,000 | 555,000 | 561,000 |
| Interest coverage | 4.43 | 3.84 | 3.90 | 3.85 | 2.68 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,403,000K ÷ $542,000K
= 4.43
Based on the interest coverage ratios for Yum! Brands Inc for the years 2020 to 2024, we can observe a gradual improvement in the company's ability to cover its interest expenses.
- In December 31, 2020, the interest coverage ratio was 2.68, indicating that the company's operating income was able to cover its interest expenses approximately 2.68 times over.
- Over the following years, there was a consistent increase in the interest coverage ratio. By December 31, 2024, the ratio had reached 4.43, reflecting an enhancement in the company's capacity to meet its interest obligations.
Overall, the positive trend in the interest coverage ratio suggests that Yum! Brands Inc has been improving its ability to service its debt and manage its interest costs effectively over the specified period. This increasing trend is a favorable indicator of the company's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024