YUM! Brands Inc. (NYSE:YUM)

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibited relatively minor fluctuations over the periods analyzed, generally oscillating between 2.9 and 3.3 times. The ratio started at 3.2, experienced a gradual decline until it reached a low point of 2.93, then showed a modest recovery toward the end of the timeframe, finishing around 3.22. This pattern suggests a stable efficiency in generating revenue from net fixed assets, with a slight dip followed by recovery, indicating consistent capital utilization.

Total Asset Turnover

Total asset turnover began at 1.39 and increased steadily to peak around 1.62 in early 2016. However, a significant drop to 1.24 occurred in the last period reported. Overall, the trend points to improving efficiency in using total assets to generate sales for most of the timeline, with a notable decline at the end which may signal a change in asset utilization or sales dynamics.

Equity Turnover

Equity turnover displayed considerable volatility throughout the periods. After consistent values near 6 from 2012 through mid-2014, a distinct spike occurred towards 2015 and peaked dramatically around 83.99 in June 2016, though data for the last periods are missing. Prior to the spike, there were fluctuations ranging between approximately 5.37 and 14.39. The sharp surge suggests exceptional changes possibly related to equity base size or sales volumes, but the missing data in later periods makes it difficult to determine the continuity or implications of this trend.

The quarterly financial data reveals several key trends in the company's operational performance and asset utilization over the observed periods.

Revenues

Revenues exhibit a generally cyclical pattern, with noticeable increases in the fourth quarter of each year followed by declines in the first quarter of the subsequent year. Over the full span, revenue figures fluctuate quarterly, peaking towards year-end periods, which suggests seasonality in sales. While the revenue amounts vary from approximately 2,500 to over 4,100 million US dollars, there is no clear long-term growth trend, indicating a relatively stable revenue base with seasonal adjustments.

Property, Plant, and Equipment (Net)

The net value of property, plant, and equipment remains relatively stable throughout the periods, with slight fluctuations mostly within the range of 4,000 to 4,500 million US dollars. There is a subtle downward movement observed in the later quarters, particularly in the final periods where the net asset base decreases from around 4,374 million to approximately 4,010 million US dollars. This could imply divestments, asset depreciation exceeding additions, or limited new capital expenditure during that time frame.

Net Fixed Asset Turnover Ratio

This ratio, representing revenue generated per unit of net fixed assets, fluctuates moderately across quarters. Initially, the ratio remains relatively high—above 3.2—indicating efficient use of fixed assets in generating revenues. However, a gradual decline occurs across several quarters, reaching a low point near 2.93, before recovering modestly above 3.2 in the latest periods. This pattern implies variations in operational efficiency or changes in asset utilization, potentially reflecting shifts in revenue generation against the backdrop of fairly stable asset levels.

In summary, revenue shows pronounced seasonality without a strong upward or downward trend, while the net value of fixed assets remains mostly constant with a slight recent decline. The fixed asset turnover ratio's fluctuations suggest changes in how effectively the company leverages its assets to produce revenue, with a mild dip followed by recovery. Together, these patterns provide insight into the company's operational rhythm and asset management over the periods analyzed.

Revenues

The revenue figures demonstrate a seasonal pattern over the observed periods, with revenues peaking consistently in the fourth quarter of each year. Starting from 2012, the quarterly revenues show growth from the first to the fourth quarter, followed by a decline in the first quarter of the subsequent year. Although there are fluctuations, the general trend reflects modest year-over-year growth, with some variation in the magnitude of quarterly increases. Notably, revenues tend to increase steadily mid-year leading into strong year-end performance.

Total assets

Total assets fluctuate slightly but exhibit a general declining trend throughout the timeline, moving from approximately 9,343 million in early 2012 to lower levels around 8,075 million by early 2016, before rising again towards the last period reported. The asset base appears to contract modestly each year, with some periods stabilizing before further decline. This pattern suggests potential divestitures, asset optimization, or revaluation effects during the interval.

Total asset turnover ratio

The total asset turnover ratio shows a relatively stable and strong performance, generally ranging from around 1.39 to 1.62 during the majority of the time frame. The ratio indicates efficient use of assets to generate revenues, with several periods reflecting improvement or maintenance of high turnover levels, particularly in the mid to late years analyzed. Interestingly, the most recent data point reflects a noticeable decrease to 1.24, which could signal a shift in asset utilization efficiency or a structural change in business operations.

Overall Insights

The data reflect a business maintaining steady revenue growth supported by effective asset utilization until the final period, where asset turnover declines. The decline in total assets over time alongside sustained revenue generation suggests strategic asset management or consolidation efforts. The seasonal revenue pattern indicates reliance on higher sales during later quarters, a characteristic that may influence cash flow planning and resource allocation. The recent downturn in asset turnover ratio merits further investigation to understand potential operational or market challenges impacting asset efficiency.

The analysis of the quarterly financial data reveals several significant trends in revenues, shareholders’ equity, and equity turnover ratios over the observed periods.

Revenues

Revenues exhibit a general seasonal pattern with highs notably in the fourth quarter of each year. Early in the timeline, from March 2012 to December 2012, revenues consistently increased from 2,743 million to 4,153 million US dollars. This cyclical increase and decrease per quarter is a recurring trend, with dips generally occurring in the first quarter and peaks in the fourth quarter. Despite fluctuations, revenues have maintained a relatively stable range, oscillating between approximately 2,600 million and 4,200 million across the entire period. No drastic long-term increasing or decreasing trend is apparent, indicating steady sales performance with expected seasonal variability.

Shareholders’ Equity (Deficit)

Shareholders’ equity shows moderate fluctuations initially but exhibits a concerning declining trend in the later periods analyzed. From March 2012 through December 2014, equity generally remained positive, ranging roughly between 2,100 million and 2,500 million US dollars, although with some periodic decreases notably towards the end of 2014. Starting from early 2015 onward, a marked decline is observed, with equity values dropping steeply from a positive balance of 1,707 million to negative territory by September 2016, reaching a deficit of nearly (–1,896) million. This shift suggests increasing liabilities, asset impairments, dividend payouts exceeding retained earnings, or other financial pressures adversely impacting the equity position.

Equity Turnover

The equity turnover ratio remains relatively stable at values around 6 in the early quarters, reflecting consistent efficiency in using shareholder equity to generate revenues. However, from late 2014 onward, this ratio begins to increase substantially, peaking dramatically to 83.99 in June 2016 before becoming unavailable after that point. The sharp rise correlates inversely with the collapse in shareholders’ equity, indicating that revenues are being generated from a rapidly diminished equity base. Such an extreme ratio typically reflects financial stress or one-off accounting events causing equity to shrink to very low or negative levels, thus inflating the turnover ratio beyond sustainable or normal levels.

In summary, the data indicates that while revenue generation remained consistent with expected seasonal trends, the company experienced a critical deterioration in shareholders’ equity towards the later periods. The sharp decline in equity and the corresponding spike in equity turnover ratio are cause for caution, suggesting potential financial instability or structural equity issues affecting the company’s financial health. Continuous monitoring and further investigation into the components causing equity erosion would be warranted to fully understand the underlying dynamics.