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Below is financial information provided for a McDonalds.It purposely gives the amounts of certain accounts from financial data. Also some ratios I calculated to come

Below is financial information provided for a McDonalds.It purposely gives the amounts of certain accounts from financial data. Also some ratios I calculated to come up with a mini analysis. Question: please answer question Question: From my calculations, will it be true to conclude that McDonald's profit margin from sales over the 3 years is poor. lacking an consistency increase, that's not enough to

cover increases in debt over the 3yrs ( shown on last calculation for Total debt ratio)? since debt ratio is increasing and profit margin growth is low.

image text in transcribed

image text in transcribed

Year Ending Dec 31, 2015 $25,413 Dec. 31, 2014 Dec 31, 2016 $24,622 7.744 Total Revenue $27,441 Operating Income 7,145 7.949 Net Income 4,686 4,529 4,758 Source: McDonald's. Year Ending Dec 31, 2015 $ 9,643 Dec 31, 2016 $ 4,849 31,024 Current Assets Dec 31, 2014 $ 4,186 34,281 2,748 37,939 Total Assets 2,950 Current Liabilities 3,468 30,851 Total Liabilities 33,228 (2,204) 21,428 12,853 7,088 Stockholder Equity Source: McDonalds. 0 0 0 0 0 0 0 0 0 00 Me Daralds 2016 2015 2014 NA WN 4,626 24, 622 Il 0.19 4,529 25,413 Sales 4,758 27,441 0.14 CO. ROA Dohrn on sets 4686 4529 4 158 Total osets 31044 06 15 37939 0.12 34,281 C. 13 9643 Current vestio = Current asets Current kablihes 4649 3468 11 2960 4186 2 748 3.27 1.40 1406 (327.6 (152-1. - Total debt ratio= Total assets - www 31004 - (2204) 37489-7098 (37939 34281 - 19863 34281 Total assets Zlcat 1.07 .81 .62 debt to total assets

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