BUSN 5200 McDonald's case study, part three, ratio analysis for 2014 and 2015?

Financial Analysis of the McDonalds Company Stock ticker symbol, exchange where traded _________ Address of company headquarters _________ Company phone number __________ Your name, etc. PART 1, COMPANY OVERVIEW: Note: Use the underline information below as headings. This helps the user of the information to quickly focus on their area of interest. a. Brief description of the company (one paragraph, briefly summarizing the company's business) b. Company history (origin, major developments, etc.) c. Organization (describe how the company is structured) d. Main products and services (describe what the company sells; how it makes money) e. Geographic area of operations (describe where the company sells its products) f. Recent developments (list recent major news stories, if any) PART 2, FINANCIAL OVERVIEW: Note: For the sales and income chart, it seems a line chart works best. The user can easily see trends over time. I like to see the actual numbers and account name on the pie charts. It just helps the user of the information quickly focus on their area of interest. a. Sales and Income Record: ------------- Fiscal Years ------------2011 2012 2013 2014 2015 -- Sales ____ -- Percent change in sales each year -- Net Income ____ -- Percent change in net income each year ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ GRAPH OF SALES & NET INCOME, FY 2011 - 2015 -| -| -| -| -| -| -| (Plot Sales and Net Income for the last five fiscal years on the graph) (Recommend you prepare the graph in Excel, then copy and paste it into the report) -| -| -| -|--------|---------|---------|---------| 2011 2012 2013 2014 2015 COMMENTS: Comment on the trends you see in your numbers and on the graph. Be sure to include comments! The numbers and the chart are meaningless by themselves. Comment on what you see. b. Expense Distribution: FY 2015 Major Expenses: ________ (list the major expense categories ________ from the latest income statement) ________ PIE CHART OF EXPENSES, FY 2015 Note - Do not \"explode\" the pie slices COMMENTS: Comment on the company's expense distribution. c. Assets Distribution: Year-end FY 2015 Assets: Cash Accounts receivable Inventory Fixed Assets Other Assets ________ ________ ________ ________ ________ PIE CHART OF ASSETS, Year-end FY 2015 COMMENTS: Comment on the company's asset distribution. c. Capital Structure: Year-end FY 2015 Capital Structure: Current Liabilities Long-term & Other Liabilities Preferred Stock (if any) Common Equity ________ ________ ________ ________ CAPITAL STRUCTURE PIE CHART, Year-end FY 2015 COMMENTS: Comment on the company's capital structure. PART 3, RATIO ANALYSIS: (1) LIQUIDITY: FY 2014 FY 2015 ____ ____ ____ ____ ____ ____ ____ ____ Current Ratio: McDonalds Wendy's Quick Ratio: McDonalds Wendy's Comments On McDonalds Liquidity: Be sure to include comments! The numbers are meaningless by themselves. Comment on what you see. What story do the numbers tell? (2) ASSET MANAGEMENT FY 2014 FY 2015 ____ ____ ____ ____ ____ ____ ____ ____ Total Asset Turnover: McDonalds Wendy's Average Collection Period: McDonalds Wendy's Comments On McDonalds Asset Management: (3) DEBT MANAGEMENT: FY 2014 FY 2015 ____ ____ ____ ____ ____ ____ ____ ____ Total Debt to Total Assets: McDonalds Wendy's Times Interest Earned: McDonalds Wendy's Comments On McDonalds Debt Management: (4) PROFITABILITY: FY 2014 FY 2015 ____ ____ ____ ____ Net profit Margin: McDonalds Wendy's Return on Assets: McDonalds Wendy's ____ ____ ____ ____ ____ ____ ____ ____ Return on Equity: McDonalds Wendy's Modified Du Pont Equation, FY 2015: Net Profit Margin Total Asset Turnover Equity Multiplier McDonalds ____ ____ ____ Wendy's ____ ____ ____ Comments On McDonalds Profitability: (5) MARKET VALUE RATIOS: FY 2014 FY 2015 ____ ____ ____ ____ ____ ____ ____ ____ PE Ratio: McDonalds Wendy's Market to Book Ratio: McDonalds Wendy's Comments On McDonalds Market Value Ratios: PART 4, CONCLUSIONS AND RECOMMENDATIONS - Summarize your analysis. Review your comments in the financial analysis section and provide your assessment of the overall status of the firm. Include any recommendations you think are appropriate. - List any other recommendations you have for the firm in view of your analysis. * End of report Outline *