GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Yum China Holdings Inc (NYSE:YUMC) » Definitions » Inventory Turnover

YUMC (Yum China Holdings) Inventory Turnover : 6.99 (As of Sep. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Yum China Holdings Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Yum China Holdings's Cost of Goods Sold for the three months ended in Sep. 2024 was $2,521 Mil. Yum China Holdings's Average Total Inventories for the quarter that ended in Sep. 2024 was $361 Mil. Yum China Holdings's Inventory Turnover for the quarter that ended in Sep. 2024 was 6.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Yum China Holdings's Days Inventory for the three months ended in Sep. 2024 was 13.05.

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 China Holdings's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.12.


Yum China Holdings Inventory Turnover Historical Data

The historical data trend for Yum China Holdings's Inventory Turnover 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.

* Premium members only.

Yum China Holdings Inventory Turnover Chart

Yum China Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.47 17.98 20.35 19.18 21.62

Yum China Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.87 5.18 6.28 6.33 6.99

Yum China Holdings Inventory Turnover Calculation

Yum China Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Inventory Turnover (A: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2023 ) / ((Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count )
=9093 / ((417 + 424) / 2 )
=9093 / 420.5
=21.62

Yum China Holdings's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

Inventory Turnover (Q: Sep. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2024 ) / ((Total Inventories (Q: Jun. 2024 ) + Total Inventories (Q: Sep. 2024 )) / count )
=2521 / ((362 + 359) / 2 )
=2521 / 360.5
=6.99

* 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  (NYSE:YUMC) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Yum China Holdings's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2024 )/Cost of Goods Sold (Q: Sep. 2024 )*Days in Period
=360.5/2521*365 / 4
=13.05

2. 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 China Holdings's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=360.5 / 3071
=0.12

* 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.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Yum China Holdings Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Yum China Holdings's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Yum China Holdings Business Description

Traded in Other Exchanges
Address
20 Tian Yao Qiao Road, Yum China Building, Shanghai, CHN, 200030
With almost 15,000 units and USD 12 billion in systemwide sales in 2023, Yum China is the largest restaurant operator in China. It generates revenue through its own restaurants and franchise fees. Key concepts include KFC (10,296 units) and Pizza Hut (3,312), but the company's portfolio also includes other brands such as Little Sheep, Taco Bell, Huang Ji Huang, and Lavazza (collectively representing more than 1,000 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.
Executives
Duoduo (howard) Huang officer: Chief Supply Chain Officer YUM CHINA BUILDING, 20 TIAN YAO QIAO ROAD, SHANGHAI F4 200030
Warton Wang officer: General Manager, KFC YUM CHINA BUILDING, 20 TIAN YAO QIAO ROAD, SHANGHAI F4 200030
Leila Zhang officer: Chief Technology Officer YUM CHINA BUILDING, 20 TIAN YAO QIAO ROAD, SHANGHAI F4 200030
Joey Wat officer: Chief Executive Officer, KFC 11F-20F, 2 GRAND GATEWAY, 3 HONGQIAO ROAD, SHANGHAI F4 200030
Jeff Kuai officer: Brand GM, Pizza Hut Home Svs 11F-20F, 2 GRAND GATEWAY, 3 HONGQIAO ROAD, SHANGHAI F4 200030
David L Hoffmann director MCDONALD'S APMEA, 1 KIM SENG PROMENADE, SINGAPORE U0 237995
Christina (xiaojing) Zhu director YUM CHINA BUILDING, 20 TIAN YAO QIAO ROAD, SHANGHAI F4 200030
Peter A Bassi director 3111 W ALLEGHENY AVE, PHILADELPHIA PA 19132
Fred Hu director 28TH FLOOR, 28 HENNESSY ROAD, ADMIRALTY K3 852
William Wang Yang director 48/F CHINA WORLD TOWER 3, NO 1 JIAN GUO MEN WAI AVENUE, BEIJING F4 100004
Johnson Huang officer: Chief Info & Marketing Officer 11F-20F, 2 GRAND GATEWAY, 3 HONGQIAO ROAD, SHANGHAI F4 200030
Aiken Yuen officer: Chief People Officer 16/F TWO GRAND GATEWAY 3 HONG QIAO ROAD, SHANGHAI F4 200030
Alice H Wang officer: Vice President, Public Affairs 11F-20F, 2 GRAND GATEWAY, 3 HONGQIAO ROAD, SHANGHAI F4 200030
Min (jenny) Zhang director YUM CHINA BUILDING, 20 TIAN YAO QIAO ROAD, SHANGHAI F4 200030
Danny Tan officer: Chief Support Officer 11F-20F, 2 GRAND GATEWAY, 3 HONGQIAO ROAD, SHANGHAI F4 200030