Here's What Yum! Brands' (NYSE:YUM) Strong Returns On Capital Mean
Here's What Yum! Brands' (NYSE:YUM) Strong Returns On Capital Mean
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So, when we ran our eye over Yum! Brands' (NYSE:YUM) trend of ROCE, we really liked what we saw.
你知道有一些财务指标可以提供潜在高收益的线索吗?在完美的世界里,我们希望看到公司将更多资本投入到业务中,最好的情况是这些资本所产生的回报也在增加。这基本上意味着公司有盈利的主动性可继续投资,这是复合机器的特征。因此,当我们审视Yum!Brands(纽交所:YUM)的ROCE趋势时,我们确实喜欢我们看到的东西。
Return On Capital Employed (ROCE): What Is It?
资本雇用回报率(ROCE)是什么?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Yum! Brands, this is the formula:
对于那些不知道的人,ROCE是衡量一家公司年度税前利润(其回报)相对于业务中的资本所使用的度量标准。要为Yum!Brands计算此指标,可以使用以下公式:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
资产雇用回报率(ROCE)是指企业利润,即企业税前利润除以企业投入的总资本(负债加股权)。如果ROCE高于企业财务成本的承受能力,那么企业就会创造出更多的价值。
0.48 = US$2.4b ÷ (US$6.2b - US$1.2b) (Based on the trailing twelve months to March 2024).
0.48 = 24亿美元÷(62亿美元-12亿美元)在Elevance Health上,我们已经注意到的趋势是相当令人放心的。数据显示,过去五年资产回报率大幅提高至15%。投资所用资产的规模也增加了30%。这表明有很多机会进行内部资本投资,并以更高的速度不断增长,这种组合在多倍增长方面很常见。.
So, Yum! Brands has an ROCE of 48%. That's a fantastic return and not only that, it outpaces the average of 10% earned by companies in a similar industry.
所以,Yum!Brands的ROCE为48%。这是一个很棒的回报,而且更重要的是,它超过了同行业公司平均10%的回报。
![roce](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240703/0-ff4c3431fde3e24386f167f7953d8036-0-bff0777b23df9b8d3d1f984ed4130fc4.png/big)
Above you can see how the current ROCE for Yum! Brands compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Yum! Brands .
您可以看到Yum!Brands当前ROCE与其以往资本回报的比较,但过去只能告诉我们这么多。如果您想了解分析师对未来的预测,您应该查看我们的免费分析师报告,了解Yum!Brands的情况。
What Does the ROCE Trend For Yum! Brands Tell Us?
Yum!Brands的ROCE趋势告诉我们什么?
Yum! Brands deserves to be commended in regards to it's returns. The company has employed 47% more capital in the last five years, and the returns on that capital have remained stable at 48%. Now considering ROCE is an attractive 48%, this combination is actually pretty appealing because it means the business can consistently put money to work and generate these high returns. If these trends can continue, it wouldn't surprise us if the company became a multi-bagger.
Yum!Brands在其回报方面值得赞扬。公司在过去五年中增加了47%的资本,该资本的回报率保持在48%的稳定水平。现在考虑到ROCE达到了48%的吸引人之处,这种组合实际上非常吸引人,因为它意味着业务可以持续投入资金并产生这些高回报。如果这些趋势可以继续下去,我们不会感到惊讶,如果这家公司成为了多次增长的机会。
The Bottom Line
还有一件事需要注意的是,我们已经确定了上海医药的2个警告信号,了解这些信号应该成为你的投资过程的一部分。
In summary, we're delighted to see that Yum! Brands has been compounding returns by reinvesting at consistently high rates of return, as these are common traits of a multi-bagger. And given the stock has only risen 29% over the last five years, we'd suspect the market is beginning to recognize these trends. So to determine if Yum! Brands is a multi-bagger going forward, we'd suggest digging deeper into the company's other fundamentals.
总的来说,我们很高兴看到Yum!Brands一直以稳定的高回报率复合回报,因为这是多次增长机会的共同特征。鉴于这只股票在过去五年中仅上涨了29%,我们怀疑市场正在开始意识到这些趋势。因此,为了确定Yum!Brands未来是否具备增长潜力,我们建议深入挖掘该公司的其他基本面。
On a final note, we found 4 warning signs for Yum! Brands (2 are potentially serious) you should be aware of.
最后,我们发现Yum!Brands有4个警告信号(其中2个可能很严重),您应该知道。
Yum! Brands is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals.
Yum!Brands不是唯一一个赚取高回报的股票。如果您想了解更多,请查看我们免费的高股权回报、基本面坚实公司名单。
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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