The 2009 Annual Report of McDonald’s Corporation contains the fo

The 2009 Annual Report of McDonald's Corporation contains the following information.


(in billions) Total assets Net sales December 31, 2009 $30,225 22,745 4,551 December 31, 2008 $28,462 Net income


Instructions
Compute the following ratios for McDonald's for 2009.
(a) Asset turnover ratio.
(b) Rate of return on assets.
(c) Profit margin on sales.
(d) How can the asset turnover ratio be used to compute the rate of return on assets?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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