YUMNEUTRAL

YUM Current Ratio Analysis

0.65x

Higher than 5% of Consumer Cyclical sector peers

Updated 540h ago·SEC filings & market data

Key Takeaway

The current ratio of 0.65x means the company has only $0.65 in short-term assets for every $1.00 of short-term liabilities, signaling a low near-term liquidity buffer.

Sector Performance

5th percentile

YUM

0.65x

Sector Median

1.44x

Sector Avg

2.72x

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Deep Analysis

The current ratio of 0.65x means the company has only $0.65 in short-term assets for every $1.00 of short-term liabilities, signaling a low near-term liquidity buffer.

This sits far below the sector median of 1.44x, placing YUM in the 5th percentile among Consumer Cyclical peers — meaning 95% of comparable firms have a higher current ratio. Because the year-over-year and quarter-over-quarter changes are both N/A, and no historical trend data beyond the single figure is available, there is no trend to assess. The combination of a very low ratio and the absence of any trend information implies elevated short-term liquidity risk, though the lack of historical context makes it unclear whether this is a temporary dip or a persistent weakness. This metric directly contradicts the overall NEUTRAL verdict, as the extreme underperformance versus peers suggests a material financial risk that would typically lean toward a more cautious assessment.

Frequently Asked Questions

What does the Current Ratio tell investors about YUM?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does YUM's Current Ratio compare to its sector?

YUM's Current Ratio of 0.65x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 5th percentile.

Who are YUM's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: JD (1.18x), MELI (1.16x), CHPT (1.15x), XPEV (1.14x), RH (1.13x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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YUM

0.65x

Sector Median

1.44x

Sector Avg

2.72x

How YUM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.