Yum China Holdings (FRA:0YU) ROCE % : 4.99% (As of Dec. 2023)

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What is Yum China Holdings 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 China Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was 4.99%.

Yum China Holdings ROCE % Historical Data

The historical data trend for Yum China Holdings'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 China Holdings ROCE % Chart

Yum China Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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20.32

9.77

7.72

6.64

11.59

Yum China Holdings 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															2.05	17.04	11.12	13.62	4.99

Yum China Holdings ROCE % Calculation

Yum China Holdings'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 )
	=	1038.961	/	( ( (11163.744 - 2044.704)	+	(11032.427 - 2220.974) )	/ 2 )
	=	1038.961	/	( (9119.04	+	8811.453)	/ 2 )
	=	1038.961	/	8965.2465
	=	11.59 %

Yum China Holdings'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 )
	=	443.828	/	( ( (11309.59 - 2316.264)	+	(11032.427 - 2220.974) )	/ 2 )
	=	443.828	/	( ( 8993.326	+	8811.453 )	/ 2 )
	=	443.828	/	8902.3895
	=	4.99 %

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

Yum China Holdings (FRA:0YU) 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 China Holdings ROCE % Related Terms

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Yum China Holdings (FRA:0YU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Yum China Holdings Inc (FRA:0YU) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

YUMC:USA 09987:Hong Kong 0YU:Germany

Address

20 Tian Yao Qiao Road, Yum China Building, Shanghai, CHN, 200030

Website

https://www.yumchina.com

With almost 13,000 units and USD 10 billion in systemwide sales in 2022, Yum China is the largest restaurant chain in China. It generates revenue through its own restaurants and franchise fees. Key concepts include KFC (9,094 units) and Pizza Hut (2,903), but the company's portfolio also includes other brands such as Little Sheep, East Dawning, Taco Bell, Huang Ji Huang, COFFii & Joy, and Lavazza (collectively representing about 950 units). Yum China is a trademark licensee of Yum Brands, paying 3% of total systemwide sales to the company it separated from in October 2016.

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