Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
YUM! Brands Inc., liquidity ratios
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.55 | 0.68 | 0.75 | 0.87 | 0.95 | |
| Quick ratio | 0.36 | 0.37 | 0.39 | 0.49 | 0.61 | |
| Cash ratio | 0.24 | 0.24 | 0.25 | 0.35 | 0.49 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | YUM! Brands Inc. current ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | YUM! Brands Inc. quick ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | YUM! Brands Inc. cash ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Current Ratio
YUM! Brands Inc., current ratio calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 1,688) | 1,646) | 1,691) | 1,909) | 2,321) | |
| Current liabilities | 3,088) | 2,411) | 2,265) | 2,188) | 2,450) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.55 | 0.68 | 0.75 | 0.87 | 0.95 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Carnival Corp. & plc | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,688 ÷ 3,088 = 0.55
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | YUM! Brands Inc. current ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Quick Ratio
YUM! Brands Inc., quick ratio calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 737) | 578) | 573) | 776) | 1,198) | |
| Accounts and notes receivable, net | 377) | 325) | 319) | 301) | 286) | |
| Total quick assets | 1,114) | 903) | 892) | 1,077) | 1,484) | |
| Current liabilities | 3,088) | 2,411) | 2,265) | 2,188) | 2,450) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.36 | 0.37 | 0.39 | 0.49 | 0.61 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Carnival Corp. & plc | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,114 ÷ 3,088 = 0.36
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | YUM! Brands Inc. quick ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |
Cash Ratio
YUM! Brands Inc., cash ratio calculation, comparison to benchmarks
| Dec 26, 2015 | Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 737) | 578) | 573) | 776) | 1,198) | |
| Total cash assets | 737) | 578) | 573) | 776) | 1,198) | |
| Current liabilities | 3,088) | 2,411) | 2,265) | 2,188) | 2,450) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.24 | 0.24 | 0.25 | 0.35 | 0.49 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Carnival Corp. & plc | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
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).
1 2015 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 737 ÷ 3,088 = 0.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | YUM! Brands Inc. cash ratio deteriorated from 2013 to 2014 and from 2014 to 2015. |