YUM! Brands Inc. (NYSE:YUM)

The financial ratios demonstrate varied trends over the observed periods, offering insights into asset utilization and equity efficiency.

Net Fixed Asset Turnover

This ratio remained relatively stable across the periods from the end of 2011 through mid-2016, fluctuating within a narrow range around 3.0. Initially, there was a gradual increase from 3.12 to 3.3 by December 2011, followed by a slight downward trend stabilizing near 3.0. From early 2015 onward, the ratio maintained values close to 3.1, ending near 3.22 by the third quarter of 2016. This stability suggests consistent efficiency in generating sales from net fixed assets without significant degradation or improvement.

Total Asset Turnover

The total asset turnover ratio exhibited modest fluctuations but overall a stable performance until a notable deviation in the final reported quarter. From March 2012 to late 2014, the ratio oscillated between 1.39 and 1.54, indicating a relatively steady ability to generate revenue from total assets. A slight improvement is seen in early 2015 reaching a peak of 1.62, suggesting enhanced asset efficiency. However, by the third quarter of 2016, the ratio sharply declined to 1.24, which might signal either an asset base increase not matched by revenue or a downturn in sales productivity from the assets.

Equity Turnover

The equity turnover ratio shows the most pronounced variability among the three ratios, indicating fluctuating performance in generating sales from shareholders' equity. Initial figures around 6.0 to 7.0 during 2011-2013 reflect steady turnover levels. In 2014, a slight dip occurred, followed by a sharp increase in early 2015, peaking dramatically at 14.39 and then surging to an anomalous 83.99 in the second quarter of 2016. These spikes likely represent extraordinary changes either in equity base or temporary revenue anomalies, as subsequent data is missing for later quarters. Such volatility suggests unusual financial or operational events impacting equity productivity.

The analysis of the quarterly financial data reveals several key trends across the reported periods.

Revenues

Revenues exhibit a seasonal pattern with fluctuations each year, often peaking in the fourth quarter (December) and dipping in the first quarter (March). Over the examined periods from early 2011 to late 2016, revenues show overall growth mixed with some volatility. For instance, revenues increased from $2,425 million in March 2011 to $4,111 million in December 2011 but then declined in the first quarter of 2012 to $2,743 million. This pattern repeats with an upward trend in the latter part of each year followed by a decrease in the initial quarter of the subsequent year. The range of revenue values generally oscillates between approximately $2,500 million and $4,200 million, suggesting a stable cyclical business environment.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment shows a relatively stable yet slightly declining trend over the period. Starting at $3,852 million in March 2011, the asset base gradually increased to a peak of $4,498 million in December 2014 before trending downward towards $4,010 million by September 2016. This pattern indicates intermittent capital expenditures coupled with possible asset disposals or depreciation exceeding new investments towards the end of the period.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, which measures the efficiency in using fixed assets to generate revenues, shows minor fluctuations but remains consistent around the range of approximately 2.9 to 3.3 throughout the reporting periods. The highest recorded ratio appears near the end of 2011 with 3.3 and maintains close to this level until 2016, suggesting steady operational efficiency in converting fixed assets into sales. The ratio’s stability, despite changes in revenues and net fixed assets, indicates effective asset management over time.

In summary, the data depict a business with a consistent seasonal revenue cycle, a generally stable fixed asset base with minor declines towards the latter part of the period, and a steady ratio of asset utilization. These factors combined suggest operational consistency, managed capital investment, and sustained efficiency in asset utilization throughout the quarters analyzed.

The financial data reveals several noteworthy trends over the analyzed periods.

Revenues

There is a consistent seasonal pattern observed with revenue peaks typically occurring in the final quarter of each year, suggesting stronger performance during that period. Revenue figures show fluctuations year over year but generally maintain the range between approximately 2,400 and 4,200 million US dollars. Periods such as Dec 31, 2011, and Dec 28, 2013, exhibit revenue highs surpassing 4,100 million, while some first quarter periods like Mar 19, 2016, show values closer to the lower end near 2,600 million. Overall, revenues show periodic increases followed by slight contractions; the trend reflects cyclical business performance with strong year-end results and somewhat weaker first quarter recoveries.

Total assets

Total assets fluctuate within a range generally between 8,000 and 9,500 million US dollars, with an exception in the last period recorded where assets jump to over 10,400 million. This spike may indicate an acquisition, investment, or revaluation event near the last date. Before this spike, assets showed mild fluctuations without a clear upward or downward trend, hovering mostly in the low 8,000 million range. The notable increase at the end suggests a strategic change or asset base expansion. The asset base shows relative stability across most quarters.

Total asset turnover ratio

Data for the total asset turnover ratio is incomplete in early periods; however, from the first available data point onwards, the ratio consistently remains above 1.4, reaching as high as 1.62. This indicates efficient use of assets to generate revenues. The ratio shows slight upward trends in mid-periods, peaking towards the end of 2015 and mid-2016, reflecting improving operational efficiency. The ratio drops sharply to 1.24 in the last period (Sep 3, 2016), which may point to the impact of the significant asset increase observed, diluting efficiency temporarily until revenues adjust accordingly.

In summary, revenues remain seasonal with periodic growth, total assets are stable with a substantial increase in the last period, and asset turnover demonstrates strong efficiency with slight variations impacted by the asset base changes. The considerable asset increase at the end suggests a strategic development that may influence future financial ratios and performance.

The analysis of the quarterly financial data reveals several notable trends and patterns over the observed periods.

Revenues

Revenues demonstrate a generally cyclical and seasonal pattern with increases observed primarily in the fourth quarter of each year. Across the entire timeline, revenues fluctuate within a certain range but generally remain between approximately 2,500 million and slightly over 4,000 million US dollars. The highest revenue values typically appear in the December quarter, suggesting a strong seasonal effect likely linked to year-end sales periods. Overall, revenues maintain relative stability with consistent quarterly variations but no marked long-term upward or downward trend.

Shareholders’ Equity

The shareholders’ equity data shows a declining trend over time, especially pronounced in the final periods analyzed. Initially fluctuating around 1,800 to 2,500 million US dollars, equity decreases significantly after 2014. From 2015 onward, there is a substantial drop, eventually resulting in negative equity by the last two reported quarters. This indicates increasing liabilities or losses that have eroded the equity base, which could be a point of concern regarding financial stability and capital structure.

Equity Turnover Ratio

The equity turnover ratio, available from September 2011 onward, generally ranges between approximately 5.4 and 8.6 in most periods, indicating how efficiently the company utilizes its equity to generate revenues. Notably, there are extreme spikes in the final periods with values surging dramatically to 14.39 and 83.99. These large increases coincide with the periods where equity becomes negative or very low, artificially inflating the ratio due to the denominator's diminution rather than reflecting genuine operational improvements. Consequently, these spikes should be interpreted with caution.

In summary, the revenue figures indicate a stable operational performance with predictable seasonal variations. However, the deteriorating shareholders’ equity highlights potential issues with profitability or financial management over the horizon. The equity turnover ratio underscores effective revenue generation relative to equity during stable periods but loses interpretive value in the context of significantly reduced or negative equity.