Question

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 assetturnover, 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?

Answer #1

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% |

Company analysis. Given the financial data in the popup
window, LOADING..., 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 85148,851
$28 comma 14928,149
EBIT
$12 comma 11912,119
$8 comma 1048,104
Net Income
$7 comma 4627,462
$5 comma...

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shareholders?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and
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2013
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$14,147,749
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Coca-Cola
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Financial Ratios for Coca-Cola (2018)
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ratio for 2013 and 2014 for Tyler Toys. Should any of these ratios
or the change in a ratio warrant concern for the managers of Tyler
Toys or the shareholders?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and
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Financial Statement Analysis Executive Summary:
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f. Return on Sales
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