Yum Brands (BSP:YUMR34) ROCE % : 49.89% (As of Dec. 2023)

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What is Yum Brands ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Yum Brands's annualized ROCE % for the quarter that ended in Dec. 2023 was 49.89%.

Yum Brands ROCE % Historical Data

The historical data trend for Yum Brands's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Yum Brands ROCE % Chart

Yum Brands Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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58.40

43.90

53.12

48.18

49.44

Yum Brands Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															51.78	47.69	54.44	57.02	49.89

Yum Brands ROCE % Calculation

Yum Brands's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	11421.434	/	( ( (30664.608 - 8733.591)	+	(30530.654 - 6257.045) )	/ 2 )
	=	11421.434	/	( (21931.017	+	24273.609)	/ 2 )
	=	11421.434	/	23102.313
	=	49.44 %

Yum Brands's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	11681.124	/	( ( (29982.848 - 7427.805)	+	(30530.654 - 6257.045) )	/ 2 )
	=	11681.124	/	( ( 22555.043	+	24273.609 )	/ 2 )
	=	11681.124	/	23414.326
	=	49.89 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Yum Brands (BSP:YUMR34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Yum Brands ROCE % Related Terms

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Yum Brands (BSP:YUMR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Yum Brands Inc (BSP:YUMR34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

YUM:USA YUM:Mexico TGR:Germany YUM:Austria

Address

1441 Gardiner Lane, Louisville, KY, USA, 40213

Website

https://www.yum.com

Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (27,760 global units at year-end 2022), Pizza Hut (19,034 units), Taco Bell (8,203 units), and The Habit Burger Grill (346 units). With $59 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($116 billion), ahead of Restaurant Brands International ($39 billion) and Starbucks ($27 billion). Yum is 98% franchised, with the largest franchisee, Yum China, spun out in 2016 (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.

Yum Brands (BSP:YUMR34) Headlines

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