Yum Brands Profit Margin vs. Cash And Equivalents
| YUM Stock | USD 138.94 0.39 0.28% |
Yum Brands Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.44 | 0.4941 |
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| Net Profit Margin | 0.24 | 0.2257 |
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| Operating Profit Margin | 0.34 | 0.3276 |
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| Pretax Profit Margin | 0.27 | 0.2569 |
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| Return On Assets | 0.27 | 0.2563 |
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For Yum Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Yum Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Yum Brands utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Yum Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Yum Brands over time as well as its relative position and ranking within its peers.
Yum |
Yum Brands' Revenue Breakdown by Earning Segment
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Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Yum Brands. If investors know Yum will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Yum Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.07) | Dividend Share 0.67 | Earnings Share 5.35 | Revenue Per Share 25.636 | Quarterly Revenue Growth 0.069 |
The market value of Yum Brands is measured differently than its book value, which is the value of Yum that is recorded on the company's balance sheet. Investors also form their own opinion of Yum Brands' value that differs from its market value or its book value, called intrinsic value, which is Yum Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Yum Brands' market value can be influenced by many factors that don't directly affect Yum Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yum Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Yum Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yum Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Yum Brands Cash And Equivalents vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Yum Brands's current stock value. Our valuation model uses many indicators to compare Yum Brands value to that of its competitors to determine the firm's financial worth. Yum Brands is rated first in profit margin category among its peers. It is rated third in cash and equivalents category among its peers creating about 1,736,867,014 of Cash And Equivalents per Profit Margin. At this time, Yum Brands' Net Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Yum Brands by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Yum Cash And Equivalents vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Yum Brands |
| = | 0.21 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Yum Brands |
| = | 367 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Yum Cash And Equivalents Comparison
Yum Brands is currently under evaluation in cash and equivalents category among its peers.
Yum Brands Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Yum Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Yum Brands will eventually generate negative long term returns. The profitability progress is the general direction of Yum Brands' change in net profit over the period of time. It can combine multiple indicators of Yum Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -302 M | -317.1 M | |
| Operating Income | 2.3 B | 1.7 B | |
| Income Before Tax | 1.8 B | 1.4 B | |
| Total Other Income Expense Net | -500 M | -475 M | |
| Net Income | 1.6 B | 1.1 B | |
| Income Tax Expense | 221 M | 353.1 M | |
| Net Income Applicable To Common Shares | 1.5 B | 1.2 B | |
| Net Income From Continuing Ops | 1.6 B | 1.4 B | |
| Interest Income | 593.4 M | 457.2 M | |
| Non Operating Income Net Other | 77.4 M | 73.5 M | |
| Net Interest Income | -513 M | -538.6 M | |
| Change To Netincome | 70.2 M | 122.3 M | |
| Net Income Per Share | 5.68 | 5.97 | |
| Income Quality | 1.00 | 0.88 | |
| Net Income Per E B T | 0.88 | 0.94 |
Yum Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Yum Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Yum Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Yum Brands' important profitability drivers and their relationship over time.
Use Yum Brands in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Yum Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yum Brands will appreciate offsetting losses from the drop in the long position's value.Yum Brands Pair Trading
Yum Brands Pair Trading Analysis
The ability to find closely correlated positions to Yum Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Yum Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Yum Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Yum Brands to buy it.
The correlation of Yum Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Yum Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Yum Brands moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Yum Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Yum Brands position
In addition to having Yum Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Current Watchlist. To learn how to invest in Yum Stock, please use our How to Invest in Yum Brands guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
To fully project Yum Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Yum Brands at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Yum Brands' income statement, its balance sheet, and the statement of cash flows.