Question
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.
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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