Question: Based only on the information in the attached pdf, which of the following statements is correct? A. McDonalds is not currently making a profit. B.

Based only on the information in the attached pdf, which of the following statements is correct? A. McDonalds is not currently making a profit. B. General Motors is not able to cover its interest payments using only its operating profit. C. General Motors is better at generating sales from its fixed assets than Tesla. D. McDonalds manages its inventory less efficiently than Cheesecake Factory. E. Cheesecake Factory has the highest operating expenses as a percentage of sales. F. Tesla manages its inventory more efficiently than General Motors. G. McDonalds is better at generating sales from its assets than Cheesecake Factory. H. Cheesecake Factory can readily service the interest payments on its debt using its operating profit. I. Tesla's revenues relative to cost of goods sold (COGS) are significantly higher than those of General Motors. J. Cheesecake Factory is currently making a loss.

McDonald's Cheesecake Factory General Motors Tesla Microsoft

Jun302020 Jun302020 Jun302020 Jun302020 Jun302020

Liquidity Ratios

Current ratio 0.9x 0.9x 1.1x 1.2x 2.5x

Quick ratio 0.8x 0.7x 0.9x 0.8x 2.3x

Cash ratio 0.8x 0.2x 0.1x 0.2x 0.8x

Asset Management Ratios (Efficiency Ratios)

Total asset turnover 0.4x 0.9x 0.5x 0.7x 0.5x

Fixed asset turnover 0.5x 1.2x 3.0x 1.3x 3.0x

Inventory turnover 215.0x 30.7x 8.6x 5.6x 23.3x

Debt Management

Debttoequity ratio NM 312.7% 294.9% 136.5% 69.4%

Times interest earned 6.2x NM 3.4x 1.7x 20.4x

Profitability

Gross profit margin 51.2% 39.4% 8.3% 19.8% 67.8%

Operating profit margin 37.8% 1.1% 2.6% 4.7% 37.0%

Net profit margin (profit margin) 25.0% 5.8% 1.5% 1.4% 31.0%

Return on Total Assets (ROA) 9.4% 0.6% 0.8% 2.2% 11.3%

Return on Equity (ROE) NM 31.80% 3.70% 4.80% 40.10%

Market Value

Price earnings (PE) ratio 24.18 NM 7.76 NM 33.92

MarkettoBook (MTB) ratio NM 2.49 0.88 22.9 13.46

Cash Conversion Cycle

Inventory conversion period (days) 1.7 11.9 42.5 65.7 15.7

Average collection period (days) 47 3.3 33 18.8 78.7

Payables deferral period (days) 26.2 12.9 75 58.3 87.3

Cash Conversion Cycle (days) 22.5 2.3 0.5 26.2 7.1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Fred Flores operates a golf driving range. For each of the following financial items related to his business, indicate the financial statement (or statements) in which the item would be reported:...

Based only on the information in the attached pdf, which of the following statements is correct? A. McDonalds is not currently making a profit. B. General Motors is not able to cover its interest...

12. If I invest $6,000 at the end of each year in a bank account which pays 10% p.a., how much will I have in my bank account after 20 years? [Give your answer to the nearest dollar.] A. $807,300 B....

Stand Alone Project all the information is attached in word format. Stand-Alone Project: Case Study in Managerial Accounting You should begin working on the Stand-Alone Project early in the course....

Need help with finance assignment. The questions are attached. need help for pages 8 to 18. 1. A(n) _______________ has a _______________ distribution and is best characterized by its_______________...

Hi, Can someone please help with these questions? I'm so confused. Please label the number of the question next to the answer and I need the answers to these questions in less than an hour please...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Question 1 Morality is Select one: A. Universal and basic to human relationships. B. Established by the common law. C. The system that protects property and people. D. The application of ethics to...

Hello, having trouble putting my PROJECT 1 assignment together and need assistance with creating an outline. I have attached the PROJECT 1 assignement and another document for this inquiry. Thanks...

From a channel design point of view, what do you see as the main variables to consider when deciding whether vending machine could be a viable channel option for any product of your choice.

Write structural formulas showing the constitution of each of the following dipeptides. Rewrite each sequence using one-letter abbreviations for the amino acids. (a) Ala-Phe (b) Phe-Ala (c) Gly-Glu...

Introduction The County of Dogville is preparing financial statements for the year. In the past year, the county began collecting a new property tax related to a vote by the community to increase...

This question requires: matrix manipulation, single for-loop, if/else statement, data input, m script file: We have 80 number grades held in a matrix (grades.m as you did the gradebook project in...