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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
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