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Similarly, the McDonald's inventory turnover ratio is far higher than that of Starbucks, and there are fewer days of pending sales. However, Starbucks has a
Similarly, the McDonald's inventory turnover ratio is far higher than that of Starbucks, and there are fewer days of pending sales. However, Starbucks has a higher asset turnover ratio and a fixed asset turnover ratio than Mcdonald's, which means that they use their money. Efficient in producing revenue. On the other hand, Mcdonald's is mostly risky than Starbucks because Mcdonald's has a significantly higher capital structure due to its debt. Moreover, in terms of profit production, Mcdonald's did better than Starbucks, even though they had a higher gross profit margin than Mcdonald's. The above review indicates clearly that Starbucks is on the safe side of the enterprise without taking chances and earning low profits. Likewise, Mcdonald's earns larger income, but Starbucks' capital structure is far more risky
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