Yum! Brands Inc (YUM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Yum Brands Inc. provide insights into the company's ability to meet its long-term financial obligations.
The Debt-to-assets ratio shows that the proportion of Yum Brands' assets funded by debt has been fluctuating over the last eight quarters, ranging from 1.80 to 2.04. A decreasing trend may indicate less reliance on debt to finance assets, while an increasing trend could signal a potential strain on the company's asset base.
The Debt-to-capital ratio reveals that Yum Brands' debt constitutes a significant portion of its capital structure, ranging from 3.35 to 3.95 over the same period. A higher ratio indicates a larger reliance on debt financing, which could pose risks in times of economic downturns or rising interest rates.
The lack of data for the Debt-to-equity ratio and Financial leverage ratio prevents us from assessing the specific relationship between Yum Brands' debt and equity components, as well as the overall impact of debt on the company's financial performance.
Overall, monitoring these solvency ratios is crucial for investors and creditors to evaluate Yum Brands' ability to manage its debt levels effectively and maintain a healthy financial position in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.52 | 4.42 | 4.30 | 4.08 | 4.15 | 2.24 | 2.60 | 3.18 | 3.85 | 15.58 | 6.68 | 4.11 | 2.77 | 1.68 | 2.04 | 2.73 | 3.70 | 17.14 | 9.39 | 6.29 |
The interest coverage ratio for Yum Brands Inc. has been relatively stable and healthy over the past eight quarters, ranging from 3.92 to 4.49. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses comfortably. A consistently high interest coverage ratio suggests that Yum Brands Inc. has a low risk of defaulting on its debt obligations due to its ability to generate enough operating income to meet interest payments. This stability in the interest coverage ratio demonstrates the company's financial strength and ability to manage its debt effectively.