Yum! Brands, parent of 5 major quick-service restaurant brands, filed its most recent 10-K statement in February 2022. It can be found here:

https://www.sec.gov/cgi-bin/viewer?action=view&cik=1041061&accession_number=0001041061-22-000009&xbrl_type=v#

Use the Consolidated Statements of Income and the Consolidated Balance Sheets to calculate the following ratios. Please copy just those two financial statements and your calculations into the spreadsheet you will submit for this test.

Calculate each ratio below for as many years as possible from the single most recent annual report. Provide a brief interpretation of what each ratio tells us about Yum! At this point.

Calculate and interpret these ratios:

• Current ratio
• Gross profit ratio
• Profit margin
• Accounts receivable turnover
• Inventory turnover