A Look Into Yum Brands' Debt
Portfolio Pulse from Benzinga Insights
Yum Brands Inc. (NYSE:YUM) has seen its shares fall by 1.18% over the past three months. The company's financial statement as of May 9, 2023, reveals a total debt of $11.75 billion, adjusted for $349.00 million in cash-equivalents, resulting in a net debt of $11.40 billion. The debt-ratio, considering Yum Brands's $5.75 billion in total assets, is at 2.04, indicating a large portion of debt is funded by assets.
July 13, 2023 | 8:45 pm
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Yum Brands' high debt-ratio of 2.04 indicates a significant portion of its assets are funding its debt. This could increase the risk of defaulting on loans, especially if interest rates rise.
Yum Brands' high debt-ratio indicates that a large portion of its assets are tied up in debt. This could potentially lead to financial instability, especially if interest rates were to rise, increasing the cost of servicing the debt. This could negatively impact the company's stock price in the short term.
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