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You are calculating the asset turnover ratios for two major fast-food chains, McDonald's Corporation and Starbucks Corporation, for the fiscal year 2023. Requirements: McDonald's reported
You are calculating the asset turnover ratios for two major fast-food chains, McDonald's Corporation and Starbucks Corporation, for the fiscal year 2023.
Requirements:
- McDonald's reported net sales revenue of $40 billion and average total assets of $20 billion for the fiscal year 2023. Starbucks reported net sales revenue of $20 billion and average total assets of $10 billion during the same period.
- Calculate the asset turnover ratio for both McDonald's and Starbucks.
- Compare the asset turnover ratios of McDonald's and Starbucks and discuss their efficiency in utilizing assets to generate sales.
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