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YUM! Brands Inc. (NYSE:YUM)

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

Current Ratio
since 2005

Microsoft Excel

Calculation

YUM! Brands Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

1 US$ in millions

The current ratio remained consistently below 1.0 throughout the period from 2005 to 2015, indicating that current liabilities exceeded current assets in every fiscal year. This persistent state suggests a structural working capital strategy where short-term obligations are not fully covered by short-term assets.

Liquidity Trend Analysis
The current ratio exhibited significant volatility, starting at 0.52 in 2005 and 2006 before experiencing a series of fluctuations. A period of improvement was observed between 2008 and 2011, with the ratio climbing from 0.55 to a peak of 0.95. However, a steady decline followed from 2012 through 2015, with the ratio returning to 0.55 by the end of the period.
Current Asset Dynamics
Current assets showed a general upward trajectory in the first half of the decade, rising from 837 million USD in 2005 to a peak of 2.32 billion USD in 2011. Following this peak, a gradual contraction occurred, with assets decreasing to 1.69 billion USD by 2015.
Current Liability Growth
Current liabilities demonstrated a long-term increasing trend, growing from 1.61 billion USD in 2005 to 3.09 billion USD in 2015. The most pronounced increase occurred between 2014 and 2015, where liabilities rose from 2.41 billion USD to 3.09 billion USD, contributing to the compression of the current ratio in the final year of the analysis.
Correlation between Assets and Liabilities
The peak liquidity observed in 2010 and 2011 was driven by a substantial increase in current assets that temporarily kept pace with rising liabilities. In contrast, the deterioration of the ratio toward 2015 was the result of stagnant asset levels coinciding with an acceleration in the growth of short-term obligations.

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Comparison to Competitors

YUM! Brands Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel
YUM! Brands Inc. Airbnb Inc. Booking Holdings Inc. Chipotle Mexican Grill Inc. DoorDash, Inc. McDonald’s Corp. Starbucks Corp.
Dec 26, 2015 0.55 — 2.47 2.91 — 3.27 1.19
Dec 27, 2014 0.68 — 3.82 3.58 — 1.52 1.37
Dec 28, 2013 0.75 — 5.41 3.34 — 1.59 1.02
Dec 29, 2012 0.87 — 3.89 2.93 — 1.45 1.90
Dec 31, 2011 0.95 — 2.77 3.18 — 1.25 1.83
Dec 25, 2010 0.94 — 4.15 3.30 — 1.49 1.55
Dec 26, 2009 0.73 — 2.50 2.91 — 1.14 1.29
Dec 27, 2008 0.55 — 1.14 2.75 — 1.39 0.80
Dec 29, 2007 0.72 — 0.88 2.75 — 0.80 0.79
Dec 30, 2006 0.52 — 5.00 2.92 — 1.21 0.79
Dec 31, 2005 0.52 — 3.15 0.42 — 1.45 0.99

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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

Comparison to Sector (Consumer Services)

YUM! Brands Inc., current ratio, long-term trends, comparison to sector (consumer services)

Microsoft Excel
YUM! Brands Inc. Consumer Services
Dec 26, 2015 0.55 2.21
Dec 27, 2014 0.68 1.96
Dec 28, 2013 0.75 1.84
Dec 29, 2012 0.87 2.11
Dec 31, 2011 0.95 1.72
Dec 25, 2010 0.94 1.79
Dec 26, 2009 0.73 1.33
Dec 27, 2008 0.55 1.14
Dec 29, 2007 0.72 0.82
Dec 30, 2006 0.52 1.14
Dec 31, 2005 0.52 1.36

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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).

Comparison to Industry (Consumer Discretionary)

YUM! Brands Inc., current ratio, long-term trends, comparison to industry (consumer discretionary)

Microsoft Excel
YUM! Brands Inc. Consumer Discretionary
Dec 26, 2015 0.55 1.25
Dec 27, 2014 0.68 1.11
Dec 28, 2013 0.75 1.15
Dec 29, 2012 0.87 1.14
Dec 31, 2011 0.95 1.31
Dec 25, 2010 0.94 1.24
Dec 26, 2009 0.73 1.25
Dec 27, 2008 0.55 0.96
Dec 29, 2007 0.72 1.21
Dec 30, 2006 0.52 1.15
Dec 31, 2005 0.52 1.10

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), 10-K (reporting date: 2010-12-25), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30), 10-K (reporting date: 2005-12-31).