Company Name McDonald's Wendy's YUM! Industry Average Market Price of Common Stock (Stock Price) $35.0 $31.0...
| Company Name | McDonald's | Wendy's | YUM! | Industry | |
| Average | |||||
| Market Price of Common Stock (Stock Price) | $35.0 | $31.0 | $45.0 | $37.0 | |
| Revenue (Sales) | $22,151.0 | $3,550.0 | $8,380.0 | $11,360.3 | |
| Cost of Goods Sold | $7,384.1 | $2,299.6 | $3,940.0 | $4,541.2 | |
| Gross Profit | $14,766.9 | $1,250.4 | $4,440.0 | $6,819.1 | |
| SG&A Expense | $5,776.0 | $261.1 | $3,005.0 | $3,014.0 | |
| Depreciation + amortization | $1,148.2 | $167.8 | $401.0 | $572.3 | |
| Operating Income (EBIT) Earnings before interest and taxes | $7,842.7 | $821.5 | $1,034.0 | $3,232.7 | |
| Interest Expense | $467.1 | $48.5 | $164.5 | $226.7 | |
| Net Profits After Tax | $1,675.0 | $236.0 | $617.0 | $842.7 | |
| 3-5 Year Growth Rate In Earnings | 15.00 | 8.00 | 7.00 | 10.00 | |
| Cash | $492.8 | $171.2 | $192.0 | $285.3 | |
| Accounts Receivables | $734.5 | $124.0 | $169.0 | $342.5 | |
| Inventory | $129.4 | $54.4 | $67.0 | $83.6 | |
| Total Current Assets | $6,500.0 | $1,235.0 | $1,485.0 | $3,073.3 | |
| Total Assets | $28,524.0 | $3,164.0 | $6,500.0 | $12,729.3 | |
| Short Term Debt | $388.0 | $50.9 | $10.0 | $149.6 | |
| Total Current Liabilities | $2,485.8 | $528.5 | $1,461.0 | $1,491.8 | |
| Long Term Debt | $9,342.5 | $692.6 | $2,056.0 | $4,030.4 | |
| Total Liabilities (Total Debt) | $11,828.3 | $1,221.1 | $3,517.0 | $5,522.1 | |
| Stockholders Equity | $16,695.7 | $1,942.9 | $2,983.0 | $7,207.2 | |
| Annual Dividends paid to common stock | $578 | $54.0 | $125 | $252 | |
| Preferred Dividends | $0.0 | $0.0 | $0.0 | $0.0 | |
| # of Common Shares Outstanding | 1,154.0 | 114.7 | 292.0 | 520.2 | |
| Financial Ratio's | McDonald's | Wendy's | YUM! | Average | |
| Liquidity | |||||
| Current Ratio | 2.61 | 2.34 | 1.02 | 1.99 | |
| Quick Ratio | 2.56 | 2.23 | 0.97 | 1.92 | |
| Asset Activity | |||||
| Accounts Rec. Turnover | 30.16 | 28.63 | 49.59 | 33.17 | |
| Inventory Turnover | 57.06 | 42.27 | 58.81 | 54.32 | |
| Total Asset Turnover | 0.78 | 1.21 | 1.29 | 0.89 | |
| Debt | |||||
| Total Debt to Equity | 0.71 | 0.63 | 1.18 | 0.77 | |
| Equity Multiplier | 1.71 | 1.63 | 2.18 | 1.77 | |
| Times Interest Earned | 16.79 | 16.94 | 6.29 | 14.26 | |
| Profitability | |||||
| Gross Profit Margin | 67% | 35% | 53% | 60% | |
| Operating Profit Margin | 35.00% | 23.00% | 12.00% | 28.00% | |
| Net Profit Margin | 8.00% | 7.00% | 7.00% | 7.00% | |
| (ROA) Return On Assets | 6% | 7% | 9% | 7% | |
| (ROE) Return On Equity | 10% | 12% | 21% | 12% | |
| Market Value | |||||
| EPS | $1.45 | $2.06 | $2.11 | $1.62 | |
| P/E | 24.14 | 15.05 | 21.33 | 22.84 | |
| PEG Ratio | 1.61 | 1.88 | 3.05 | 2.28 | |
| Dividends Per Share | 0.50 | 0.47 | 0.43 | 0.48 | |
| Dividend Payout Ratio | 34% | 23% | 20% | 30% | |
| Book Value Per Share | $14.47 | $16.94 | $10.22 |
$13.85 |
|
| Price to Book Value | ? | ? | ? | ||
| Market Capitalization | ? | ? | ? | ? | |
| Cash Per Share | $0.43 | $1.49 | $0.66 | $0.55 | |
| Revenue Per Share | $19.20 | $30.95 | $28.70 | $21.84 |
Based on the Financial Ratio's, which company do you feel is the best investment?
(enter answer in this textbox) (must be 100 words or more)
Homework Answers
Wendy is the best investment because
1. Solvency ratio :
Total Debt to Equity at 0.63 is lowest indicating less leverage and lesser risk. The repaying capacity of Wendy is highest indicated by Times Interest earned which is equal to 16.94.
2. Profitability ratio: The net profit margin of 7% and ROE of 12% is second best in the selected companies. It provides higher profits at lower risk.
3. Efficiency Ratios: Total Asset Turnover is second best among all companies
4. Liquidity ratios: The current ratio and Quick ratio is high indicating cash inflow in the company.
5.The book value is highest with lower P/E ratio indicating higher potential for growth over others
Hence Investment should be in Wendy's
Please Discuss in case of Doubt
Best of Luck. God Bless
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Add Answer to:
Company Name McDonald's Wendy's YUM! Industry Average Market Price of Common Stock (Stock Price) $35.0 $31.0...
Fill in the remaining boxes and write short response to question. Company Name McDonald's Wendy's YUM!...
Fill in the remaining boxes and write short response to question. Company Name McDonald's Wendy's YUM! Industry Average Market Price of Common Stock (Stock Price) $35.0 $31.0 $45.0 $37.0 Revenue (Sales) $22,151.0 $3,550.0 $8,380.0 $11,360.3 Cost of Goods Sold $7,384.1 $2,299.6 $3,940.0 $4,541.2 Gross Profit $14,766.9 $1,250.4 $4,440.0 $6,819.1 SG&A Expense $5,776.0 $261.1 $3,005.0 $3,014.0 Depreciation + amortization $1,148.2 $167.8 $401.0 $572.3 Operating Income (EBIT) Earnings before interest and taxes $7,842.7 $821.5 $1,034.0 $3,232.7 Interest Expense $467.1 $48.5 $164.5 $226.7...
Complete Assurance of Learning Exercise 4C: Financial Ratio Analysis for PepsiCo. Financial Ratios for PepsiCo (2012)...
Complete Assurance of Learning Exercise 4C: Financial Ratio
Analysis for PepsiCo.
Financial Ratios for PepsiCo (2012) use the below information to
find
Liquidity Ratios:
- Current ratio:
- Quick ratio:
Leverage Ratios:
- Debt-to-total-assets ratio:
- Debt-to-equity ratio:
- Long-term debt-to-equity ratio:
- Times-earned-interest ratio: Profits before interest and
taxes/Total interest charges
Activity Ratios:
- Inventory turnover:
- Fixed assets turnover:
- Total assets turnover:
- Accounts receivable turnover:
Profitability Ratios:
- Gross profit margin:
- Operating profit margin:
-...
Calculate the following ratios based on Wendy's 2017 and 2018 financial statements and comment on the...
Calculate the following ratios based on Wendy's 2017 and 2018
financial statements and comment on the differences between FY 2017
and FY 2018.
Wendy's
FY 2017
FY 2018
Liquidity
Current Ratio:
Quick Ratio:
Comments on the companies' liquidity - what do the numbers
say?
Asset Management
Total Asset Turnover:
Avg Collection Period:
Comments on the companies' asset management - what do the numbers
say?
Debt Management
Total Debt to Total Assets:
Times Interest Earned:
Comments on the companies' debt management...
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balance sheet and income statement (McDonalds 2017-2018)
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1. Compare the performance of S&S Air to the industry. For each ratio, comment on why...
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ratio calculated as inventory divided by current liabilities. How
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Financial analysis calculations:
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quick ratio = 0.39
cash ratio = 0.15
total asset turnover = 2.01
inventory turnover = 27.96
receivables turnover...
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Low: 76.63
Close: 76.68 Adj. Close:
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Complete Assurance of Learning Exercise 4C: Financial Ratio
Analysis for PepsiCo.
Financial Ratios for PepsiCo (2012) use the below information to
find
Liquidity Ratios:
- Current ratio:
- Quick ratio:
Leverage Ratios:
- Debt-to-total-assets ratio:
- Debt-to-equity ratio:
- Long-term debt-to-equity ratio:
- Times-earned-interest ratio: Profits before interest and
taxes/Total interest charges
Activity Ratios:
- Inventory turnover:
- Fixed assets turnover:
- Total assets turnover:
- Accounts receivable turnover:
Profitability Ratios:
- Gross profit margin:
- Operating profit margin:
-...
Calculate the following ratios based on Wendy's 2017 and 2018
financial statements and comment on the differences between FY 2017
and FY 2018.
Wendy's
FY 2017
FY 2018
Liquidity
Current Ratio:
Quick Ratio:
Comments on the companies' liquidity - what do the numbers
say?
Asset Management
Total Asset Turnover:
Avg Collection Period:
Comments on the companies' asset management - what do the numbers
say?
Debt Management
Total Debt to Total Assets:
Times Interest Earned:
Comments on the companies' debt management...
balance sheet and income statement (McDonalds 2017-2018)
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1. Compare the performance of S&S Air to the industry. For
each ratio, comment on why it might be viewed as positive or
negative relative to the industry. Suppose you create an inventory
ratio calculated as inventory divided by current liabilities. How
do you think S&S Air’s ratio would compare to the industry
average?
Financial analysis calculations:
current ratio = 0.74
quick ratio = 0.39
cash ratio = 0.15
total asset turnover = 2.01
inventory turnover = 27.96
receivables turnover...
Additional information:
1.
The market price of Flint’s common stock was $7.00, $7.50, and
$8.50 for 2018, 2019, and 2020, respectively.
2.
You must compute dividends paid. All dividends were paid in
cash.
Problem 13-03A a (Video) Condensed balance sheet and income statement data for Flint Corporation are presented here Flint Corporation Balance Sheets December 31 2020 2019 2018 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) $ 32,000 22,000 20,000 52,000 93,000 58,000 500,000 47,000...
1.) For the price/earning ratio, you need the closing stock
price on January 31st, 2014 (This was a Friday and the last day the
stock was traded for the year being reported.... closing stock
price was 76.68 (complete the blanks)
Open: 78.28
High: 78.75
Low: 76.63
Close: 76.68 Adj. Close:
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sheet amounts at December 31 of the prior year were
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