Analysis – McDonalds IndustriesEssay Preview: Analysis – McDonalds IndustriesReport this essayManagers review financial data because its the process of determining and evaluating financial ratio. The ratio analysis helps a company determine something about a companys activities, which includes the difference between current assets and current liabilities or accounts receivable and annual sales. Most ratios include the financial statements where it contains figures of assets, liabilities, profit, and losses. Financial ratio can indicate the companys strength or weakness.
McDonalds goals are to provide quality service to all of it customers in a cleanliness establishment, and instill value in each and every one that is part of the McDonalds corporation. The key to McDonalds success is balancing the interests of owner/operators, suppliers, and company employees. The company has a good business ethics which hold itself to high standards of fairness, honesty, and integrity.
The current ratio tells you, does the business have enough current assets to meet the payments for the current liabilities, and still have a safety margin. Therefore, looking at McDonalds balance sheet it tells you that for every dollar in current liability they have $1.49 of current asset. As a result, McDonalds has been able to increase its current ratio from $1.39 in 2008 to $1.49 in 2010 by increasing its current assets. The quick ratio gives the investors a better picture of a companys ability to meet current obligations then current ratio. It also tells you whether a company can pay off their current debt liabilities without relying on their inventory. As a result, McDonalds has an excellent quick ratio (which is $1.46) because it can pay back its current liabilities. Cash ratio measure the ability to repay its current liabilities by only using its cash and cash equivalents. In other words, if the company has a cash ratio above one then the company is able to pay its liabilities back in the short-term. In many cases, like McDonalds, they choose to keep their current liabilities the same as their cash so they can use a portion of the cash to generate profits. Therefore, McDonalds cash ratio looks like its been consistent in the past year which is about .81.
McDonalds is a publicly traded company. The company works to provide sustained profitable growth for their shareholders wealth. Equity multiplier ratio is used to measure a companys total assets against the stockholders equity, which provides a way for investors to examine the level to which a company uses debt to finance its assets. In example, McDonalds has 1 to 2.18 equity multiplier, which means that the company has a high financial leverage and they rely more on debt to finance all of their assets. Times interest earned ratio is a measurement of the long-term viability of a company to pay off its debts. Therefore, the higher value of the time interest earn the more favorable, which means the greater the chance ability the company is able to repay its interest and debt. In general, McDonalds is favorable to creditors because they have a high ratio for the past 3 years and this means that the lenders are willing to lend to them because they will be able to pay back their loan in the future.
The McDonalds Company Report for 2010
The report is a series of detailed, annual report on McDonalds (McDonaldsi, Inc.) (McDonalds Holdings)
The McDonalds Corporate Finance (McDonalds Financial Accounts) for 2010
The report contains a detailed report on McDonalds’ finances and trends (including financial information and financial reporting on our subsidiary McDonalds Enterprises) on McDonalds Holdings (McDonalds Corporation). This is a critical document to take in any further discussions between or, at least with close inspection, any of its executive stockholders (McDonalds as well as our own employees and/or partners) about who is “in the financial business of McDonalds” and what their “financial position” is. This document will also inform or inform you of McDonalds’ plans to work with our independent legal counsel with a view to obtaining new legal counsel with a view to obtaining an attorney to seek a legal opinion on a case. This document will also be of valuable benefit to us: We are looking for a lawyer or a partner to represent us. Additionally, a partner that provides financial services for McDonalds might also be a possible candidate to assist in our legal process, as there is no obligation on the partnership to provide legal consultations, and the partner does not typically need to consult with us on such matters. All of these options exist.
The McDonalds Corporate Credit Report for 2009
It contains a detailed McDonalds Corporate Financial Statement (McDonald’s Corporation)
The McDonalds Corporate Finance Summary for 2009
It contains the McDonald’s Corporate Accounting Summary for 2009
Other information: McDonald’s Company Holdings financial statements and various business data, information with respect to our non-corporate subsidiaries (including financial performance statements) will be posted on the website of our subsidiaries. You can follow their updates here. The information we provide to you prior to making a decision to buy McDonald’s Companies, its stock, or any other stock of McDonald’s, directly or through its affiliates, subsidiaries, or stockholders must be accurate and complete, as any errors in them may affect you as a reader of any of McDonald’s Company’s financial statements and, if so, your full and complete right to review McDonald’s Company’s Corporate Financial Statement, as well as any legal actions against McDonald’s companies, our subsidiaries, or any other stockholders. If our management or the management’s attorneys decide that we do not provide such information to you with due care, they may withdraw the request without notice. As of this publication McDonald’s Corporation (McDonald’s Corporation) reported to the financial statements in accordance with the effective date of these statements, or the information we provide upon request as a result of that determination, was issued.
The McDonalds Corporate Accounting Summary for 2009
The McDonald’s Corporate Accounting Summary for 2009.pdf contains information on our consolidated financial statement management, including the Company’s consolidated financial positions and transactions, as well as information on the operations of the Company and other related matters. The McDonald’s Corporate Accounting Summary for 2009.pdf contains more information on McDonald’s Company’s financial statements. It is posted at https://finance.mcdonalds.com and is available by accessing our web site, here. For additional information and to obtain more information, please contact the Corporation or the Office of Management and Budget.
Other information: The Company’s financial statements are periodically released to the public on the Company’s website, the Company’s Stock Market, and our proxy statements. We regularly update this information to reflect changes in market conditions. As of this publication we have provided to you the latest information on the Company’s financial condition as of December 31, 2013. See Note 11 to our Stock Market for further information on these financial statements as of December 31, 2013.
See also our previous disclosure of the facts regarding certain of the other information contained in this report.
C. Financial Statements
A. Disclaimer Regarding Form 8-K
The McDonalds Company Report for 2010
The report is a series of detailed, annual report on McDonalds (McDonaldsi, Inc.) (McDonalds Holdings)
The McDonalds Corporate Finance (McDonalds Financial Accounts) for 2010
The report contains a detailed report on McDonalds’ finances and trends (including financial information and financial reporting on our subsidiary McDonalds Enterprises) on McDonalds Holdings (McDonalds Corporation). This is a critical document to take in any further discussions between or, at least with close inspection, any of its executive stockholders (McDonalds as well as our own employees and/or partners) about who is “in the financial business of McDonalds” and what their “financial position” is. This document will also inform or inform you of McDonalds’ plans to work with our independent legal counsel with a view to obtaining new legal counsel with a view to obtaining an attorney to seek a legal opinion on a case. This document will also be of valuable benefit to us: We are looking for a lawyer or a partner to represent us. Additionally, a partner that provides financial services for McDonalds might also be a possible candidate to assist in our legal process, as there is no obligation on the partnership to provide legal consultations, and the partner does not typically need to consult with us on such matters. All of these options exist.
The McDonalds Corporate Credit Report for 2009
It contains a detailed McDonalds Corporate Financial Statement (McDonald’s Corporation)
The McDonalds Corporate Finance Summary for 2009
It contains the McDonald’s Corporate Accounting Summary for 2009
Other information: McDonald’s Company Holdings financial statements and various business data, information with respect to our non-corporate subsidiaries (including financial performance statements) will be posted on the website of our subsidiaries. You can follow their updates here. The information we provide to you prior to making a decision to buy McDonald’s Companies, its stock, or any other stock of McDonald’s, directly or through its affiliates, subsidiaries, or stockholders must be accurate and complete, as any errors in them may affect you as a reader of any of McDonald’s Company’s financial statements and, if so, your full and complete right to review McDonald’s Company’s Corporate Financial Statement, as well as any legal actions against McDonald’s companies, our subsidiaries, or any other stockholders. If our management or the management’s attorneys decide that we do not provide such information to you with due care, they may withdraw the request without notice. As of this publication McDonald’s Corporation (McDonald’s Corporation) reported to the financial statements in accordance with the effective date of these statements, or the information we provide upon request as a result of that determination, was issued.
The McDonalds Corporate Accounting Summary for 2009
The McDonald’s Corporate Accounting Summary for 2009.pdf contains information on our consolidated financial statement management, including the Company’s consolidated financial positions and transactions, as well as information on the operations of the Company and other related matters. The McDonald’s Corporate Accounting Summary for 2009.pdf contains more information on McDonald’s Company’s financial statements. It is posted at https://finance.mcdonalds.com and is available by accessing our web site, here. For additional information and to obtain more information, please contact the Corporation or the Office of Management and Budget.
Other information: The Company’s financial statements are periodically released to the public on the Company’s website, the Company’s Stock Market, and our proxy statements. We regularly update this information to reflect changes in market conditions. As of this publication we have provided to you the latest information on the Company’s financial condition as of December 31, 2013. See Note 11 to our Stock Market for further information on these financial statements as of December 31, 2013.
See also our previous disclosure of the facts regarding certain of the other information contained in this report.
C. Financial Statements
A. Disclaimer Regarding Form 8-K
Total asset turnover is useful in determining the amount of sales that are generated from each dollar of asset. While examining McDonalds asset turnover you can see that it very low because it have low receivables and inventory. Therefore, the company has been utilization it assets inefficient. In other words, looking at McDonalds pass 3 years financial statement they declined in 2008 to 2009 and it look like in 2009 they reviewed their financial statement and their asset turnover increase about .0004, and figuring out ways to increase its asset turnover.
Net profit margin equation is used to determine how much a companys revenues is profitability and how the company can control its cost. In most cases companies likes a high profit margin McDonald and still finding ways to increase. Reviewing the financial statements this company is finding way to increase its profit margin by growing its sells and in return getting a higher net income each year. Return on assets (ROA) looks at the ability of a company to utilize its assets to gain a net profit. After finding the asset turnover and net profit margin, you can easily find the ROA by multiplying net profit margin by asset turnover because it will cancel out revenue which will leave you with the asset. Therefore, McDonalds evaluating its company how well their company is generate cash flow on their assets. However, McDonalds cash inflow on assets has been the same consisted for the pass three year which is about 15%, which mean that this company has a high return on its assets and can use its assets efficiently. Return on Equity ratio (ROE) helps to measure a company profitability of stockholders investments. Therefore, the higher