Question

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

Answer 1

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