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Yum Brands Inc (NYSE:YUM)
Inventory to Revenue
0.07 (As of Sep. 2015)

Inventory to revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Yum Brands Inc's average inventory for the quarter that ended in Sep. 2015 was $255 Mil. Yum Brands Inc's revenue for the three months ended in Sep. 2015 was $3,427 Mil. Yum Brands Inc's inventory to revenue ratio for the quarter that ended in Sep. 2015 was 0.07.

Yum Brands Inc's inventory to revenue ratio for the quarter that ended in Sep. 2015 declined from Jun. 2015 (0.09) to Jun. 2015 (0.07)

A decrease in the inventory to revenue ratio from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the inventory to revenue ratio, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Yum Brands Inc's days inventory for the three months ended in Sep. 2015 was 9.31.

Inventory can be measured by Days Sales of Inventory (DSI). Yum Brands Inc's days sales of inventory (DSI) for the three months ended in Sep. 2015 was 6.78.

Inventory turnover measures how fast the company turns over its inventory within a year. Yum Brands Inc's inventory turnover for the quarter that ended in Sep. 2015 was 9.80.


Definition

Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Yum Brands Inc's Inventory to Revenue for the fiscal year that ended in Dec. 2014 is calculated as

Inventory to Revenue (A: Dec. 2014 )
=Average Inventory / Revenue
=( (Inventory (A: Dec. 2013 ) + Inventory (A: Dec. 2014 )) / 2 ) / Revenue (A: Dec. 2014 )
=( (294 + 301) / 2 ) / 13279
=297.5 / 13279
=0.02