Liquidity ratios

	2017	2018	2019	Industry
Current ratio	1.84	1.36	0.98	1.08
Quick ratio	1.82	1.35	0.97	0.89
Cash ratio	0.85	0.29	0.25	-

Asset Management

	2017	2018	2019	Industry
Average collection period (ACP)	31.61	42.39	38.52	-
Account Receivable Turnover (ART)	11.55	8.61	9.48	-
Days in Inventory (DI)	1.76	1.82	1.83	-
Inventory Turnover (IT)	206.78	200.77	199.22	8.11
Average Days Payable Outstanding (DPO)	27.67	43.06	36.20	-
Total Asset Turnover (TAT)	0.68	0.64	0.44	-
Fixed Asset Turnover (FAT)	1.02	0.92	0.56	-

Profitability

	2017	2018	2019	Industry
Net Profit Margin (PM)	22.75%	28.18%	28.59%	8.28
Operating Margin (OM)	36.77%	40.84%	42.16%	-
Return on Asset (ROA)	15.36%	18.06%	12.68%	-
Return on Equity (ROE)	-158.88%	-94.66%	-73.39%	-

McDonald Debt Management Ratios

	2017	2018	2019	Industry
DEBT-TO-EQUITY	-9.04	-4.97	-4.16	1.23
LIABILITIES-TO-ASSETS	109.67%	119.08%	117.28%
TIMES INTEREST EARNED(TIE)	9.11	8.75	7.92	46.3
PRICE-TO-EARNINGS (PE)	25.60	22.86	24.85	21.2
PRICE-TO-BOOK EQUITY (PB)	-40.67	-21.64	-18.23	-

Help, please!!!!

Hi, I computed the ratios for McDonald Corp. for my finance class. When I check how McDonald's bond was rated by Moody's and S & P, I found that bonds have a rating of Baa1 and BBB+

Can you explain to me what is the meaning/ definition of these bond ratings Baa1 and BBB+?

the book I use is "The principles of Finance by Ernst Coupet Jr.

The ratios above are supposed to analyze and determine if the bonds issued by McDonald relates to the debt ratios

That's all the info. I have...All the ratios on the tables above I compute them to check if the way Moody's and S & P rates McDonald's are related to those 5 ratios from debt management. To answer the following question.. How does this rating relate to the performance of McDonald's debt management in the table above? In your opinion, do the numbers justify the ratings of McDonald's? Why or why not?