Yum China HoldingsYUMC +1.81%81 Current Ratio is 1.01 as of Mar. 2026, which is 33% below its 10-year median of 1.50. GuruFocus rates YUMC with a GF Score™ of 81/100 and a GF Value™ of $54.02 (Modestly Undervalued). Among 360 Restaurants companies, Yum China Holdings ranks better than 51.11% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Yum China Holdings's current ratio for the quarter that ended in Mar. 2026 was 1.01.
Yum China Holdings has a current ratio of 1.01. It generally indicates good short-term financial strength.
The historical rank and industry rank for Yum China Holdings's Current Ratio or its related term are showing as below:
YUMC'
s Current Ratio Range Over the Past 10 Years
Min: 1.01 Med: 1.5 Max: 2.47
Current: 1.01
During the past 13 years, Yum China Holdings's highest Current Ratio was 2.47. The lowest was 1.01. And the median was 1.50.
YUMC's Current Ratio is ranked better than 51.11% of 360
companies
in the Restaurants industry
Industry Median: 0.99
vs YUMC: 1.01
Yum China Holdings (NYSE:YUMC) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Yum China Holdings Current Ratio Related Terms
Yum China Holdings Current Ratio Historical Data
* Premium members only.
The historical data trend for Yum China Holdings's Current Ratio 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.
For the Restaurants subindustry, Yum China Holdings's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Yum China Holdings Current Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Yum China Holdings's Current Ratio distribution charts can be found below:
* The bar in red indicates where Yum China Holdings's Current Ratio falls into.
* 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.
Yum China Holdings (YUMC) has a Current Ratio of 1.01 as of Mar. 2026. This is 33% below median its historical median of 1.50. Over the past decade, Yum China Holdings' Current Ratio has ranged from 1.01 to 2.47. According to the industry distribution chart, Yum China Holdings ranks #176 out of 360 companies in the Restaurants industry, placing it in the top 48.9%.
Is Yum China Holdings' Current Ratio too high?
Yum China Holdings' current Current Ratio of 1.01 is 33% below median its 10-year median of 1.50. Over the past 10 years, this metric has ranged from a low of 1.01 to a high of 2.47. The Restaurants industry median Current Ratio is 0.99. Yum China Holdings' value of 1.01 is 2% above this industry median. Based on the distribution chart, Yum China Holdings ranks #176 out of 360 companies in the Restaurants industry, which is above the industry midpoint. Overall, Yum China Holdings has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Yum China Holdings' Current Ratio compare to TXRH and DPZ?
According to the Restaurants industry distribution chart, Yum China Holdings ranks #176 out of 360 companies for Current Ratio. This puts Yum China Holdings in the upper half of its industry. The industry median Current Ratio is 0.99. Yum China Holdings' value of 1.01 is 2% above this benchmark. Historically, Yum China Holdings' own Current Ratio has ranged from 1.01 to 2.47 over the past decade. While the company's 10-year median is 1.50 vs. the industry median of 0.99, Yum China Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Restaurants company?
The median Current Ratio among Restaurants companies is 0.99, based on 360 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum China Holdings's current Current Ratio of 1.01 is 2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum China Holdings's current Current Ratio is 1.01, which is 33% below median its own 10-year median of 1.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum China Holdings stock overvalued right now?
Based on GuruFocus' analysis, Yum China Holdings (YUMC) is currently considered Modestly Undervalued. The stock's GF Value™ is $54.02, compared to a current price of $41.70 — trading 22.8% below its estimated fair value. The current Current Ratio is 1.01, which is 33% below median its 10-year median of 1.50 and 2% above the Restaurants industry median of 0.99. Yum China Holdings' overall GF Score™ is 81/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Yum China Holdings (YUMC), the current Current Ratio is 1.01 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum China Holdings (YUMC) Overvalued in 2026?
Based on GuruFocus' analysis, Yum China Holdings stock appears to be undervalued.
The current stock price of $41.70 is trading 22.8% below its estimated GF Value™ of $54.02.
GuruFocus considers Yum China Holdings to be Modestly Undervalued.
Key valuation signals for YUMC:
Current Ratio: 1.01 (33% below median its 10-year median of 1.50)
GF Value™: $54.02 vs. price of $41.70 (22.8% below fair value)
Industry Position: 2% above the Restaurants median (#176 of 360)
No single metric tells the full story. See the YUMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yum China is the largest restaurant operator in China, with over 18,000 locations and USD 12 billion in systemwide sales as of 2025. It generates revenue primarily from its own restaurants and franchise fees. While KFC and Pizza Hut are its flagship brands, Yum China's portfolio also includes Little Sheep, Taco Bell, Huang Ji Huang, and Lavazza.As a trademark licensee of Yum Brands, Yum China pays 3% of KFC and Pizza Hut's systemwide sales to its former parent, from which it spun off in 2016. However, even before the separation, Yum China was granted substantial autonomy, giving its Chinese leadership decision-making authority over menu, supply chain, and marketing—an unusual practice for Western chains at the time.
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