YUMC Yum China Holdings, Inc.

Overview and Growth

Yum China Holdings, Inc. generated $11.80B of revenue in fiscal 2025, with net income of $929.00M and an operating cash inflow of $1.47B. The $11.80B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line expanded 4.4% from $11.30B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $2.51, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 7.7% from $2.33 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Total assets stood at $10.78B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Asset turnover was 1.09x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Operations produced $1.29B of income after the reported operating expense base, before the remaining non-operating and tax effects. Relative to revenue, operating income represented 10.9%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $929.00M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 7.9% of revenue, connecting the absolute net income figure with the company’s top-line scale. Before income taxes, the company reported $1.36B of earnings, providing a bridge between the operating result and final net income. Pretax income represented 11.5% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $369.00M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 27.2% of pretax income, showing the tax burden absorbed by the year’s earnings. Net income equaled 15.2% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 8.6%, showing earnings relative to the full balance sheet.

Liquidity and Capital Structure

At period end, the $10.78B asset base was financed through $4.68B of liabilities and $6.10B of equity. At period end, current assets of $2.36B compared with current liabilities of $2.25B, defining the company’s short-term resource position. Current assets covered current liabilities by 1.05x, leaving a positive buffer for near-term obligations. The company held $506.00M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 22.5%, excluding receivables and other current assets. Relative to total assets, liabilities measured 43.4%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 4.7%, comparing reported cash and equivalents with the full positive asset balance. Compared with $11.12B in fiscal 2024, the current asset base moved 3.0% and finished lower. Book equity was 4.9% lower than fiscal 2024 equity of $6.41B, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

The company reported $1.47B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.58x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $626.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 42.7% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $840.00M, leaving a positive amount after capital expenditures. Free cash flow represented 7.1% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 7.8%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.