Question

Given the financial data in the popup​ window for Disney​ (DIS) and​ McDonald's (MCD), compare these two companies using the following financial​ ratios: debt​ ratio, current​ ratio, total asset​ turnover, financial​ leverage, profit​ margin, and return on equity. Which company would you invest​ in, either as a bondholder or as a​ stockholder?

The total asset turnover ratio for Disney​ is:

The total asset turnover ratio for​ McDonald's is:

The financial leverage ratio for Disney​ is:

The financial leverage ratio for​ McDonald's is:

The profit margin ratio for Disney​ is:

The profit margin ratio for​ McDonald's is:

The return on equity for Disney​ is:

The return on equity for​ McDonald's is:

The best company to invest in appears to be​ ____

Data Table Click on the following Icon in order to past this table's content into a spreadsheet. Disney McDonald's Sales $48,835 $28,085 | EBIT $12.203 $8.114 Net Income $7,406 $5,576 Current Assets $15.134 Total Assets $84,148 $36.541 Current Liabilities $13,185 $3,184 Total Liabilities $39,288 $20,553 Equity $44.907 T $ 16,008 Values are expressed in millions of dollars. Print Done

Answer 1

DATE: Vage - FORMULA:- DEBT Debt tatio = RATIO TOTAL LIABILITIES TOTAL, ASSETS rec DONALD'S DISNEY Debt hatib = I Debt Ratio - BS 39288 उपाय: 84148 20153 36541 = 10.467) . = (0.562 0.562 C).' CURRENT RATIO » Current Ratio = CURRENT ASSETS CURRENY LIABILITIES FONMULA DISNEY Mc DONALD'S Current Ratio = 15134 13185 Current Ratio - soar 3184 11.148 16578

Page 2 TOTAL ASSEY TURNOVER FORMULA:- NEY SALES TOTAL ASSETS DISNEY Mc DONALD'S Total deset Turnover= 48831 84148 Total Asset Turnover = 280837 36541 = 0.580 0.580 0.769 FORMULAS- FINANCIAL LEVERAGC- TOTAL DERBY Shareholders Equity Mc DONALDS DISNEY fenonceal develoge: 39288 hinancial levesage = 20553 44907 16008 10.875 11.284

Page 3 YOKMULA :- Prosit MARGIN NET INCOME NEY SALES DISNEY MC DONALDS frofit Morgin = 7406 48835 Probit torgin = { 28085 0.152 0-199 (v RETURN ON EQUITY NEY INCOME EQUITY FORMULA ;- - DISNEY I MC DONALD'S Return on equity = 7406 Return on Equity = 5516 16008 44907 = 0.165 0.165 = 0.348 The best company to invest is AC DONALD'S
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