YUM Quick Ratio 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.

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