Mcdonalds Financial Analysis
Table of Contents 1. Corporation Overview 3 2. Financial Statements 4 2.1 Income Statement 5 2.1 Balance Sheet 6 2.2 Statement of Cash Flows 8 2.3 Statement of Owners Equity 8 3. Financial Statement Summary 9 4. Ratio Calculation 10 4.1 Liquidity ratios 10 4.2 Asset management ratios 11 4.3 Debt management ratios 11 4.4 Profitability ratios 12 4.5 market value ratios 13 5. Ratio Comparison with Industry 14 6. Key Statistics 17 7. Other Important Information 20 8. Recommendation 26 9. References 28
McDonald's Financial Analysis
In a country where the fast food industry is huge and where obesity rates are sky rocking it is interesting to see if the menus offered by the yellow and orange clown besides making people fat are also making investors’ wallets grow in size. McDonald’s (MCD) has many competitors in the fast food industry but it is considered a leader in its sector and throughout this paper it will be discussed if this company is a good financial investments based on the organization financial results. By calculating different financial and managerial ratios it will be established if it offers the best menu to the hungry investor. Corporation Overview McDonald’s is part of the restaurant scene and more precisely of the fast food industry. It initiated operations in 1940 and now it is a “food service retailer with more than 32,000 local restaurants serving more than 64 million people in 117 countries each
McDonald's Financial Analysis
In a country where the fast food industry is huge and where obesity rates are sky rocking it is interesting to see if the menus offered by the yellow and orange clown besides making people fat are also making investors’ wallets grow in size. McDonald’s (MCD) has many competitors in the fast food industry but it is considered a leader in its sector and throughout this paper it will be discussed if this company is a good financial investments based on the organization financial results. By calculating different financial and managerial ratios it will be established if it offers the best menu to the hungry investor. Corporation Overview McDonald’s is part of the restaurant scene and more precisely of the fast food industry. It initiated operations in 1940 and now it is a “food service retailer with more than 32,000 local restaurants serving more than 64 million people in 117 countries each
References: Ehrhardt, M. C., & Brigham, E. F. (2011). Financial Management Theory and Practice (13th ed.). Mason, OH: Cengage Learning. Forbes website. (2011). Retrieved May 8t, 2011, from http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=mcd Investopedia website. (2011). Retrieved May 8, 2011 from http://www.investopedia.com/terms/l/liquidity.asp McDonald’s website. (2011). http://www.aboutmcdonalds.com/mcd/investors/stocks_and_dividends/dividend_and_split_information.html YCharts website. (2011). Retrieved May 8, 2011 from http://ycharts.com/companies/MCD/peg_ratio Yahoo Financial website. (2011) Retrieved May 8, 2011 from http://biz.yahoo.com/p/3connameu.html Yahoo Financial website (2011) Retrieved June 6, 2011 from http://finance.yahoo.com