Debt to Equity
since 2005
Calculation
YUM! Brands Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Shareholders’ equity (deficit), YUM! Brands, Inc.1 | |
|---|---|---|---|---|---|
| Dec 26, 2015 | 4.37 | = | 3,977) | ÷ | 911) |
| Dec 27, 2014 | 2.16 | = | 3,344) | ÷ | 1,547) |
| Dec 28, 2013 | 1.38 | = | 2,989) | ÷ | 2,166) |
| Dec 29, 2012 | 1.37 | = | 2,942) | ÷ | 2,154) |
| Dec 31, 2011 | 1.82 | = | 3,317) | ÷ | 1,823) |
| Dec 25, 2010 | 2.28 | = | 3,588) | ÷ | 1,576) |
| Dec 26, 2009 | 3.19 | = | 3,266) | ÷ | 1,025) |
| Dec 27, 2008 | — | = | 3,589) | ÷ | (108) |
| Dec 29, 2007 | 2.82 | = | 3,212) | ÷ | 1,139) |
| Dec 30, 2006 | 1.58 | = | 2,272) | ÷ | 1,437) |
| Dec 31, 2005 | 1.28 | = | 1,860) | ÷ | 1,449) |
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 financial trajectory from 2005 to 2015 is characterized by a general increase in total leverage and significant volatility in the equity base, resulting in a fluctuating debt-to-equity profile. While total debt followed a generally upward trend over the decade, the equity position experienced severe contractions, including a period of deficit, which heavily influenced the leverage ratios.
- Total Debt Evolution
- Total debt increased from 1,860 million US$ in 2005 to 3,977 million US$ by 2015. A period of rapid accumulation occurred between 2005 and 2008, where debt rose from 1,860 million US$ to 3,589 million US$. Following a brief period of stabilization and a slight reduction to 2,942 million US$ in 2012, debt levels resumed an upward climb, peaking at the end of the observed period.
- Shareholders' Equity Dynamics
- The equity position demonstrated extreme instability. After starting at 1,449 million US$ in 2005, equity declined sharply to a deficit of 108 million US$ in 2008. A subsequent recovery phase saw equity rise to a peak of 2,166 million US$ by 2013. However, this gain was reversed in the final two years, with equity falling to 911 million US$ by 2015, representing a significant reduction in the company's net asset base.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio reflects the combined impact of rising debt and volatile equity. The ratio rose from 1.28 in 2005 to 2.82 in 2007. Due to the equity deficit in 2008, the ratio was not applicable for that period. From 2009 to 2012, a trend of deleveraging is observed, with the ratio improving from 3.19 to a low of 1.37. This trend reversed sharply after 2013, with the ratio escalating to 4.37 by 2015, the highest level in the recorded period, driven by the simultaneous increase in total debt and the contraction of shareholders' equity.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
YUM! Brands Inc., debt to equity, long-term trends, comparison to competitors
| YUM! Brands Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 26, 2015 | 4.37 | — | 0.70 | 0.00 | — | 3.40 | 0.40 |
| Dec 27, 2014 | 2.16 | — | 0.45 | 0.00 | — | 1.17 | 0.39 |
| Dec 28, 2013 | 1.38 | — | 0.28 | 0.00 | — | 0.88 | 0.29 |
| Dec 29, 2012 | 1.37 | — | 0.37 | 0.00 | — | 0.89 | 0.11 |
| Dec 31, 2011 | 1.82 | — | 0.22 | 0.00 | — | 0.87 | 0.13 |
| Dec 25, 2010 | 2.28 | — | 0.26 | 0.00 | — | 0.79 | 0.15 |
| Dec 26, 2009 | 3.19 | — | 0.15 | 0.00 | — | 0.75 | 0.18 |
| Dec 27, 2008 | — | — | 0.54 | 0.00 | — | 0.76 | 0.51 |
| Dec 29, 2007 | 2.82 | — | 0.98 | 0.00 | — | 0.61 | 0.55 |
| Dec 30, 2006 | 1.58 | — | 1.63 | 0.00 | — | 0.55 | 0.32 |
| Dec 31, 2005 | 1.28 | — | 0.61 | 0.00 | — | 0.67 | 0.13 |
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., debt to equity, long-term trends, comparison to sector (consumer services)
| YUM! Brands Inc. | Consumer Services | |
|---|---|---|
| Dec 26, 2015 | 4.37 | 1.37 |
| Dec 27, 2014 | 2.16 | 0.73 |
| Dec 28, 2013 | 1.38 | 0.60 |
| Dec 29, 2012 | 1.37 | 0.61 |
| Dec 31, 2011 | 1.82 | 0.61 |
| Dec 25, 2010 | 2.28 | 0.60 |
| Dec 26, 2009 | 3.19 | 0.59 |
| Dec 27, 2008 | — | 0.69 |
| Dec 29, 2007 | 2.82 | 0.60 |
| Dec 30, 2006 | 1.58 | 0.52 |
| Dec 31, 2005 | 1.28 | 0.59 |
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., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| YUM! Brands Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 26, 2015 | 4.37 | 1.88 |
| Dec 27, 2014 | 2.16 | 1.60 |
| Dec 28, 2013 | 1.38 | 1.25 |
| Dec 29, 2012 | 1.37 | 1.19 |
| Dec 31, 2011 | 1.82 | 1.09 |
| Dec 25, 2010 | 2.28 | 1.26 |
| Dec 26, 2009 | 3.19 | 2.58 |
| Dec 27, 2008 | — | 4.06 |
| Dec 29, 2007 | 2.82 | 2.62 |
| Dec 30, 2006 | 1.58 | 2.96 |
| Dec 31, 2005 | 1.28 | 2.35 |
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).