Question

# Company analysis.  Given the financial data in the popup​ window for Disney​ (DIS) and​ McDonald's (MCD),...

Company analysis.  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?

 Disney ​McDonald's Sales ​\$48 comma 76548,765 ​\$28 comma 14228,142 EBIT ​ \$12 comma 29712,297 ​\$8 comma 1038,103 Net Income ​ \$7 comma 5737,573 ​\$5 comma 5455,545 Current Assets ​\$15 comma 13415,134 ​\$5 comma 0975,097 Total Assets ​\$84 comma 05384,053 ​\$36 comma 51636,516 Current Liabilities ​\$13 comma 18413,184 ​\$3 comma 1683,168 Total Liabilities ​\$39 comma 14939,149 ​\$20 comma 54620,546 Equity ​\$44 comma 83944,839 ​\$16 comma 03116,031 Values are expressed in millions of dollars.

1) The debt to ratio for Disney and McDonald's is? 4 decimals

2) The current ratio for both? 4 dec.

3) The total asset turnover ratio for both? 4

4) The financial leverage ratio for both? 4 dec.

5) The profit margin ratio is? 4 dec.

6) The return on equity is? 4 dec.

7) Which is the best company to invest in?

 Disney ​McDonald's 1 debt ratio =Total liabilities / total assets 39,149 / 84,053 =0.4658 20,546 / 36,516 =0.5627 2 current ratio = Current Assets / Current Liabilities 15,134 / 13,184 =1.1479 5,097 / 3,168 =1.6089 3 total asset turnover ratio = sale / total assets 48,765 / 84,053 =0.5802 28,142 / 36,516 =0.7707 4 financial leverage ratio = Total debt / Total equity 39,149 / 44,839 =0.8731 20,546 / 16,031 =1.2816 5 profit margin ratio = net income / sale 7,573 / 48,765 =15.5296% 5,545 / 28,142 =19.7036% 6 return on equity = net income / total equity 7,573 / 44,839 =16.8893% 5,545 / 16,031 =34.5892%

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