Question

# Go to the Internet and find the following ratios for McDonald Corporation (MCD). Give the source...

Go to the Internet and find the following ratios for McDonald Corporation (MCD). Give the source of your information.

 Ratio Formula Calculation Ratio Liquidity Current total current assets / total current liabilities Quick, or Acid Test (current assets - inventories) / current liabilities Asset Management Inventory Turnover cost of goods sold / Inventories (average) Days sales outstanding Receivables / Sales per day Fixed assets turnover Annual sales / Net Fixed assets (average) Total assets turnover Annual sales / total assets (average) Debt Management Debt ratio total debt / total assets Interest coverage EBIT / Interest charges Profitability Net profit margin net income / total operating revenue Net return on assets net income / total average assets Return on common equity net income to stockholders / average common equity Dividend payout ratio total cash dividends / net income Market Value P-E ratio (Market Price/share) / (Earnings/share) Market/Book (Market Price/Share) / (Book Value/Share) Dividend yield Dividend per share / Market Price per share

Source: https://finance.yahoo.com/quote/MCD/financials?p=MCD

Liquidity:

Total Current Assets / Total Current Liabilities

 30-Dec-19 30-Dec-18 USD Thousand' Total Current Assets 35,57,900 40,53,200 Total Current Liabilities 36,21,000 29,73,500 Current Ratio 0.98 1.36

Quick Ratio = (Total Current Assets- Inventory) / Total Current Liabilities

 30-Dec-19 30-Dec-18 Total Current Assets 35,57,900 40,53,200 Inventory 50,200 51,100 Total Current Liabilities 36,21,000 29,73,500 Quick Ratio 0.97 1.35

Asset Management

Inventory Turnover

Cost of goods sold is Cost of Revenue

Inventories (average) = For 2019 (2019 Inventory +2018 Inventory) / 2

For 2018 (2018 Inventory +2017 Inventory) / 2

 30-Dec-19 30-Dec-18 Cost of goods sold 99,61,200 1,02,39,200 Inventories (average) 50,650 54,950 Inventory Turnover 196.7 186.3

Days sales outstanding = (Receivables / Total Revenue ) * 365

 30-Dec-19 30-Dec-18 Receivables 22,24,200 24,41,500 Total Revenue 2,10,76,500 2,10,25,200 Days sales outstanding 38.5 42.4

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