Using the financial statements, calculate and analyze the following financial ratios for McDonalds for the most recent three years reported: ? Profit Margin ? Return on Assets ? Return on Equity ? Debt to Total Assets ? Times Interest Earned ? Current Ratio ? Quick Ratio

This Learning Activity involves preparing a preliminary financial analysis of one of the largest firms in the world, McDonalds Corporation. Locate the annual reports (10-K) of McDonalds (MCD) for the most recent three years reported. For this assignment, do NOT use the Dupont Method (if applicable). Using the financial statements, calculate and analyze the following financial ratios for McDonalds for the most recent three years reported: Profit Margin Return on Assets Return on Equity Debt to Total Assets Times Interest Earned Current Ratio Quick Ratio Present your ratios first. Then, analyze each ratio trend. The analysis should address the following questions: 1. Is the ratio trend increasing or decreasing? 2. Why is there an increasing trend or a decreasing trend? 3. Is this trend favorable or unfavorable? Why? 4. What might the firm do to change the ratio? Your analysis should be written in the APA-format or the MLA-format, double-spaced, Times New Roman, 12-point font, properly cited. Your submission should not exceed three total pages. Submit your analysis in one Microsoft-compatible file. (You may embed an Excel table for ratios in a Word document or vice versa if you choose.) The following links may be helpful: McDonalds Corporate Information http://www.mcdonalds.com/us/en/our_story/Corporate_Info.html (Links to an external site.) Search for a company at SEC http://www.sec.gov/edgar/searchedgar/companysearch.html (Links to an external site.) If the link fails to open in a new window, you may want to copy/paste the link into a new browser window