YUMNEUTRAL

YUM Quick Ratio Analysis

0.49x

Higher than 42% of Consumer Cyclical sector peers

Updated 1234h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets, excluding inventory.

Sector Performance

42th percentile

YUM

0.49x

Sector Median

0.61x

Sector Avg

2.25x

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Deep Analysis

The quick ratio measures a company’s ability to pay short-term liabilities using its most liquid assets, excluding inventory.

At 0.49x, YUM has less than half a dollar of liquid assets for every dollar of current debt — a low level that signals tight near-term liquidity. Among Consumer Cyclical peers, this ratio sits below the sector median of 0.71x and places YUM in the 37th percentile, meaning 63% of peers have higher quick ratios. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and only a single historical value of 0.49x is provided. Without a trend, the risk assessment hinges solely on the current level — the low quick ratio suggests elevated short-term financial risk, but there is no evidence of deterioration or improvement. This metric contradicts the overall NEUTRAL verdict because the low liquidity position implies a higher-than-average risk profile, which would typically warrant a more cautious stance.

Frequently Asked Questions

What does the Quick Ratio tell investors about YUM?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

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

YUM's Quick Ratio of 0.49x compares to a Consumer Cyclical sector median of 0.61x, placing it in the 42th percentile.

Who are YUM's closest peers by Quick Ratio?

The closest Consumer Cyclical peers by Quick Ratio include: PDD (0.61x), CZR (0.62x), PHM (0.54x), TSLA (0.54x), TCS (0.45x).

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Learn More About Quick Ratio

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The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.