In 2012, Yum Brands Inc. reported a profit margin of 11.8% using profit in the numerator. Had the profit margin been based on total comprehensive income, instead of profit, the revised profit margin would have increased to 12.6%. In 2011, its profit margin was 10.6% using profit and 10.5% using total comprehensive income.
(a) Has Yum Brands' profitability improved or deteriorated in 2012?
(b) Which profit margin- without other comprehensive income or with other comprehensive income-is the most appropriate ratio to use in this particular case for analysis purposes? Explain.