Stock Analysis on Net
Stock Analysis on Net

YUM! Brands Inc. (NYSE:YUM)

This company has been moved to the archive! The financial data has not been updated since October 11, 2016.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

YUM! Brands Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 26, 2015 141.93% = 16.01% × 8.86
Dec 27, 2014 67.94% = 12.59% × 5.39
Dec 28, 2013 50.37% = 12.55% × 4.01
Dec 29, 2012 74.14% = 17.72% × 4.18
Dec 31, 2011 72.35% = 14.93% × 4.85

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2015 year is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

YUM! Brands Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 26, 2015 141.93% = 9.87% × 1.62 × 8.86
Dec 27, 2014 67.94% = 7.91% × 1.59 × 5.39
Dec 28, 2013 50.37% = 8.34% × 1.50 × 4.01
Dec 29, 2012 74.14% = 11.71% × 1.51 × 4.18
Dec 31, 2011 72.35% = 10.45% × 1.43 × 4.85

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2015 year is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

YUM! Brands Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 26, 2015 141.93% = 0.73 × 0.92 × 14.78% × 1.62 × 8.86
Dec 27, 2014 67.94% = 0.72 × 0.91 × 12.12% × 1.59 × 5.39
Dec 28, 2013 50.37% = 0.69 × 0.85 × 14.12% × 1.50 × 4.01
Dec 29, 2012 74.14% = 0.75 × 0.93 × 16.89% × 1.51 × 4.18
Dec 31, 2011 72.35% = 0.80 × 0.90 × 14.47% × 1.43 × 4.85

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2015 year is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

YUM! Brands Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 26, 2015 16.01% = 9.87% × 1.62
Dec 27, 2014 12.59% = 7.91% × 1.59
Dec 28, 2013 12.55% = 8.34% × 1.50
Dec 29, 2012 17.72% = 11.71% × 1.51
Dec 31, 2011 14.93% = 10.45% × 1.43

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2015 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

YUM! Brands Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 26, 2015 16.01% = 0.73 × 0.92 × 14.78% × 1.62
Dec 27, 2014 12.59% = 0.72 × 0.91 × 12.12% × 1.59
Dec 28, 2013 12.55% = 0.69 × 0.85 × 14.12% × 1.50
Dec 29, 2012 17.72% = 0.75 × 0.93 × 16.89% × 1.51
Dec 31, 2011 14.93% = 0.80 × 0.90 × 14.47% × 1.43

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2015 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

YUM! Brands Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 26, 2015 9.87% = 0.73 × 0.92 × 14.78%
Dec 27, 2014 7.91% = 0.72 × 0.91 × 12.12%
Dec 28, 2013 8.34% = 0.69 × 0.85 × 14.12%
Dec 29, 2012 11.71% = 0.75 × 0.93 × 16.89%
Dec 31, 2011 10.45% = 0.80 × 0.90 × 14.47%

Based on: 10-K (reporting date: 2015-12-26), 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29), 10-K (reporting date: 2011-12-31).

The primary reason for the increase in net profit margin ratio over 2015 year is the increase in operating profitability measured by EBIT margin ratio.