Company:  McDonald’s

Company:  McDonald’s
Link to 2016 Balance Sheet:
Balance Sheet (p31)
What is the sum of their assets or Owner’s assets? $31,023,900,000
Total Current Assets – $4,848,600,000
Total Long Term Assets – $ 31,023,900,000
What is the sum of their liabilities? $3,468,300,000 (or Total Current Liabilities)
What is the stockholders’ or owner’s equity? $2,204,300,000

  • If it is in a () or listed a negative, it means it’s being removed from the value. It does not mean it’s a negative number.

What is the Total Liabilities – $31,023,900,0000
2016 Income Statement (p29)
What was their 2016 profit? $24,621,900,000
List 3 of their largest expenses:

  • Food & Paper
  • Payroll & Employee Benefits
  • Occupancy & Other Operating Expenses

2016 Cash Flow Statement (p32)
What is their cash flows from operating activities? $6,059,600,000
What is their cash flows from investing? $981.600,000
What is their cash flows from financing? $11,262,400,000
Compute the following ratios for the ’16 and ’15 years, then report the results.  (I’m doing 16 only.)
(If you want, you can list the differences on a chart)
Liquidity Ratios
Current Ratio: Current Assets/Current Liabilities=Current Ratio
$31,023,900,000/$3,400,300,000 = 9.12
Quick Ratio: Cash +Receivables/Current Liabilities=Quick Ratio
$1,223,400,000/$3,468,300,000 = .35
Asset Management Ratios
Inventory Ratio: Cost of Goods Sold/Inventory=Inventory Turnover
$16,877,400,000/XXX – Not available  Can be done one the restaurant level
Asset Turnover Ratio: Sales/Total Assets=Asset Turnover
$24,621,900,000 (p29)/$31,023,900,000 (p31)= .79
Profitability Ratios
Gross Margin: Gross Profit (or Sales-Cost of goods sold)/Sales x 100=Gross Margin
$7,744,500,000 (operating income – p29)/$24,621,900,000 (pg 29) x 100 = 31.45%
Profit Margin: Net Income/Sales x 100 =Return on Sales
$4,686,500,000 (pg 29)/$24,621,900,000 (p29)  x 100 = 19%
Return on Equity: Net Income/Owners’ Equity x 100=ROI
2016 – $4,686,500,000 (pg 29)/-$2,204,300,000 x 100 = -212%
2016 – $4,529,300,000 (pg 29)/$7,087,900,000 x 100 = 63%
Earnings per Share: Net Income/Total Number of Shares=Earnings Per Share
$4,686,500,000/818,993,182 (p1) = $5.72
However, it is listed adjusted on (p17) = $5.55
Return on Invested Capital: Net Income/Total Capital x 100 =Return on Invested Capital
$4,686,500,000/$31,023,900,000 (p31) = 15.1%
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