Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help explain on the numbers below how the company is doing. A page or two please to get me started. Once you have found

Please help explain on the numbers below how the company is doing. A page or two please to get me started.
Once you have found this information and looked it over you will be able to write a paper that tells us about how the company is doing with respect to the ratios, what the ratios are telling you about the company and how you predict they will do in the future.
Please provide references for your annotated information.
Thank you for the assistance.
I'm calculating the mentioned ratios for McDoanlds Corp (December 2015).
Current Ratio = Current Assets / Current Liabilities=> 9,643,000/2,950,450 = 3.268315
Acid Test Ratio (Quick Ratio) = (Current assets Inventory) / Current Liabilities=> (9,643,000- 100,100) / 2,950,450 = 3.234388
Account Receivable Turnover = Sales/Account Receivable=> 25,413,000/1,298,700 = 19.56803
Average Collection Period = 365/ Account Receivable Turnover=> 365/19.56803 = 18.65287
Inventory Turnover = Cost of Goods sold / Average InventoryCost of Goods sold = Cost of Revenue = 15,623,800
Average Inventory = (Inventory of 2014 + Inventory of 2015)/2 = (110,000+100,100)/2 = 105,050Inventory Turnover = 15,623,800/105,050 = 148.7272
Debt Ratio = Total Liabilities / Total Assets=> 30,850,800/37,938,700 = 0.8131749
Times Interest Earned = EBIT / Interest Expense=>As no intereset expense mentioned in the balance sheet, we can't calculate it.
Total Asset Turnover = Revenue / Total Assets=> 25,413,000/37,938,700 = 0.6698437
Fixed Asset Turnover = Revenue / Net Fixed Asset=> 25,413,000/(37,938,700 - 9,643,000) = 0.8981223
Gross Profit Margin = Gross Profit / Revenue=> 9,789,200/25,413,000 = 0.3852044
Operating Profit Margin = Operating Profit / Revenue=> 7,145,500/25,413,000 = 0.2811749
Net Profit Margin = Net Profit / Revenue=> 4,529,300/25,413,000 = 0.1782276
Operating Return on Assets = EBIT / Average Total Assets [Average total assets = (Assets of 2014 + Assets of 2015)/2]=> 6,555,700 / (37,938,700 + 34,227,400)/2 = 0.1816836
ROE = Net Income / Shareholder's equity=> 4,529,300/7,087,900 = 0.6390186
P/E Ratio = (Number of shares x current price)/Net Income=>(16,600*$128.83) / 4,529,300 = 0.472165
Market to book-value = Market Value of shares / Book value of shares=> (16600*128.83) / 7,087,900 = 0.3017223
image text in transcribed
This is your opportunity to play detective and do some financial statement analysis. Please select any publically traded company. Using the company you select please find the annual report and the financial ratio information for the company for the following ratios: Debt to Equity Current Ratio Return on Equity Quick Ratio Working Capital Ratio Price Earnings Ratio Earnings Per Share and one additional ratio of your Once you have found this information and looked it over you will be able to write a paper (approx 4 to 6 pages) that tells us about how the company is doing with respect to the ratios, what the ratios are telling you about the company and how you predict they will do in the future. Please provide references for your annotated information Thank you for the assistance. Assignment 5 Grading Rubric Grade Possible Assigne Grade Notes 15 The introduction clearly identifies the company being evaluated and provides an overview of what the paper will All of the ratios have been represented 15 and discussed in the paper, including the additional ratio of the student's choosin 15 The future projection for the company has been 20 The analysis demonstrates an understanding of what the ratios represent and how they are used in inancial analvsis There is a clear and concise conclusion. inancial analysis 15 10 Grammar and Spelling is at a graduate level r APA format is applied 10 100 Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Issues In Development Finance

Authors: Joshua Yindenaba Abor, Robert Lensink, Charles Komla Delali Adjasi

1st Edition

1138324329, 978-1138324329

More Books

Students also viewed these Finance questions