YUM Debt-to-Equity Ratio Analysis

The debt-to-equity ratio compares total liabilities to shareholders’ equity.

A negative value of -1.64x means the company has negative equity—its liabilities exceed its assets, which is an unusual and risky financial position. Among consumer cyclical peers, the sector median is 0.47x, and YUM ranks in the 8th percentile, indicating it is far more leveraged than most. Trend data is not available, with no year-over-year or quarter-over-quarter change reported. The combination of a deeply negative ratio and no trend information suggests elevated financial risk, as negative equity often signals potential distress or past losses. This metric contradicts the overall NEUTRAL verdict, because a debt-to-equity ratio this far below the sector median typically points to higher investment risk rather than a balanced outlook.

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