Question
Could you please summarize the following? Thank you (1) LIQUIDITY: FY 2017 FY 2018 Current Ratio: Mcdonalds. _1.84___ _1.36___ Wendys _1.78___ __2.34__ Quick Ratio: Mcdonalds
Could you please summarize the following?
Thank you
(1) LIQUIDITY:
FY 2017 FY 2018
Current Ratio:
Mcdonalds. _1.84___ _1.36___
Wendys _1.78___ __2.34__
Quick Ratio:
Mcdonalds 1.82____ _1.35___
Wendys _1.77___ __2.33__
Comments On The Companys Liquidity:
Be sure to include comments! The numbers are meaningless by themselves. Comment
on what you see. What story do the numbers tell?
(2) ASSET MANAGEMENT
FY 2017 FY 2018
Total Asset Turnover:
Mcdonalds. _.68___ _.63___
Wendys _.30___ _.38___
Average Collection Period:
Mcdonalds __31.6__ __42.4__
Wendys __34.6__ ____
(3) DEBT MANAGEMENT:
FY 2017 FY 2018
FY 2017 FY 2018
Total Debt to Total Assets:
Mcdonalds _110%___ __119.07__
Wendys _86%___ __.64__
Times Interest Earned:
Mcdonalds __9.1X__ _8.71___
Wendys __2.4X__ ____
(4) PROFITABILITY:
FY 2017 FY 2018
Net profit Margin:
Mcdonalds. _22.8%___ _28.18___
Wendys _15.9 %___ _4.7%___
Return on Assets:
Mcdonalds _15.3 %___ _%15.82___
Wendys __ 4.74%__ __ 10.83%__
Return on Equity:
Mcdonalds _0___ __0__
Wendys _ 33.9%___ _79.14%___
Modified Du Pont Equation, FY 2018:
Mcdonalds. Wendys
Net Profit Margin _28.2%___ _28.94__
Total Asset Turnover _.64%___ _.38___
Equity Multiplier ____ _7.9376___
(5) MARKET VALUE RATIOS:
FY 2017 FY 2018
FY 2017 FY 2018
PE Ratio:
Mcdonalds. _$26.72___ __$23.55__
Wendys _$20.83___ _$9.22___
Market to Book Ratio:
Mcdonalds. _-41.30___ _22.13___
Wendys $6.82____ _$6.45___
:
PART 4, CONCLUSIONS AND RECOMMENDATIONS
Summarize your analysis. Review your comments in the financial analysis section and provide your assessment of the overall status of the firm. Include any recommendations you think are appropriate.
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