FINANCIAL ANALYSIS Of Yum
FINANCIAL ANALYSIS
Finance is one of the most important parts of any business largely because suggested solutions in financial decisions are measured. As the world is moving close to competition, it is very essential for Yum brands to handle the economic downturn and insulate itself against the impacts at the highest levels possibilities so that there is minimal effect on their sales growth and profitability.
Current financial figures of companies greatly affect future forecasts because if actual results are far off current plans, this will impact upon the forecasts for the coming years and vice versa. Achieving current sales and revenue figures are very important for Yum brands as this will have significant impact on their future strategies to come.
Financial Highlights:
Considerable progress has been made in the development of the group with vital capital expenditure and the restructuring of a number of businesses. It opened nearly 2,000 new restaurants in 2012. Yum also grew worldwide system sales 5% and operating profit 12%, both prior to foreign currency translation and special items and also generated $1.6 billion in net income and almost $2.3 billion in cash from operations.
Ratios:
When looking at the financial performance of a company, it is important to examine the financial ratios. There are several different classifications of financial ratios:
Profitability Ratios:
Profitability ratios show a company's overall efficiency and performance. The key profitability ratios are:
Gross Profit Margin:
It looks at cost of goods sold as a percentage of sales and signifies, how well a company controls the cost of its inventory and the manufacturing of its products and subsequently pass on the costs to its customers. The larger the gross profit margin, the better for the company.
2012
16.83%
2011
14.38%
2010
15.60%
2009
14.67%
GPF trend has increased from the last year period. Therefore, it can be concluded that the gross profit margin of yum have shown positive
Finance is one of the most important parts of any business largely because suggested solutions in financial decisions are measured. As the world is moving close to competition, it is very essential for Yum brands to handle the economic downturn and insulate itself against the impacts at the highest levels possibilities so that there is minimal effect on their sales growth and profitability.
Current financial figures of companies greatly affect future forecasts because if actual results are far off current plans, this will impact upon the forecasts for the coming years and vice versa. Achieving current sales and revenue figures are very important for Yum brands as this will have significant impact on their future strategies to come.
Financial Highlights:
Considerable progress has been made in the development of the group with vital capital expenditure and the restructuring of a number of businesses. It opened nearly 2,000 new restaurants in 2012. Yum also grew worldwide system sales 5% and operating profit 12%, both prior to foreign currency translation and special items and also generated $1.6 billion in net income and almost $2.3 billion in cash from operations.
Ratios:
When looking at the financial performance of a company, it is important to examine the financial ratios. There are several different classifications of financial ratios:
Profitability Ratios:
Profitability ratios show a company's overall efficiency and performance. The key profitability ratios are:
Gross Profit Margin:
It looks at cost of goods sold as a percentage of sales and signifies, how well a company controls the cost of its inventory and the manufacturing of its products and subsequently pass on the costs to its customers. The larger the gross profit margin, the better for the company.
2012
16.83%
2011
14.38%
2010
15.60%
2009
14.67%
GPF trend has increased from the last year period. Therefore, it can be concluded that the gross profit margin of yum have shown positive