YUMNEUTRAL

YUM Debt-to-Equity Ratio Analysis

-1.64x

Higher than 7% of Consumer Cyclical sector peers

Updated 1235h ago·SEC filings & market data

Key Takeaway

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

Sector Performance

7th percentile

YUM

-1.64x

Sector Median

0.47x

Sector Avg

1.84x

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Deep 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.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about YUM?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does YUM's Debt-to-Equity Ratio compare to its sector?

YUM's Debt-to-Equity Ratio of -1.64x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 7th percentile.

Who are YUM's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: ROL (0.49x), BOOT (0.59x), CAVA (0.62x), BWA (0.69x), GME (0.71x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.