Mc Donald

Mc Donald

McDonald'sis the world's largest chain ofhamburger fastfood restaurants .Founded in 1940.Serving around 68 million customers daily in 119 countries across 35,000 outlets.Slogan : Im Lovinn It Outline :

1. Three significant changes from 2008 2014 ? 2. The most significant changes of industry using financial ratios ? 3. Does your company have the same changes together with the industry ? 4. Analyze all financial ratios from 2008-2014 .5. Show a graph of 3 significant changes from 2008-2014 .

Questions :

Income Statement Mc Donald

Yum Brands

4

Balance Sheet Mc Donald

Yum Brands

Cash FlowMc Donald

Yum Brands

1.Three significant change in financial ratio from 2008-2014

Significant change Mc Donald and Yum Inventory Turnover Ratio Mc Donald 's inventory turnover has increased 44% higher than that of Yum ==> Mc Donald sales their products faster than Yum .

Significant change Mc Donald and Yum Receivable Turnover Ratio

Although this ratio decreased in both companies , Mc Donald 's receivables turnover has decreased 18 % lower than that of Yum ==> Mc Donald collects their debts faster and more efficient than Yum .

Significant change Mc Donald and Yum Return on Equity Ratio

Yum 's return on quity has increased 93.5% higher that of Mc Donald ==> Yum can generate more profits from their stock holders quity .

2, 3 . The most significance change in industry and competitors

Mc Donald and Industry Inventory Turnover Ratio from 2010 to 2014 Inventory turnover of MC Donald has increased by 14.5% and that of the industry has decreased by 30% , which shows that MC Donald has an ability to sale products 44.5% faster than the industry .

1. Liquidity Ratios 2. Solvency Ratios 3. Asset Management Ratios 4. Profitability Ratios 5. Market Value Ratios 4. Analyze all financial ratios from 2008-2014 .

Liquidity Ratios and Solvency Ratios

Asset Management Ratios

Profitability Ratios and Market Value Ratios

1. Liquidity Ratios Graph 2. Solvency Ratios Graph3. Asset Management Ratios Graph

5. Show a graph of 3 significant changes from 2008-2014 .

Days sales in inventory decreases sharply Mc Donald could sale products and collect money fast .

Days sales in inventory fluatuated ( It increases then decreases ) Yum could sale products and collect money fast compared to Mc Donald .

Sheet1

Yum BrandsYear 20082009201020132014Liquidity Ratios Current Ratio0.55226480840.73079249850.94485294120.74657836640.6827042721Quick Ratio0.46922183510.65698729580.86764705880.61677704190.5578598092Cash Ratio0.12543554010.21355111920.58251633990.25298013250.23973455Solvency RatiosDebt Ratio1.01654665240.85660324570.81048581050.75089131680.8146195327Times interest earned -0.0122134387-0.0155188679-0.02080.030.0139271255Cash coverage ratio-2.2098418972-2.7513679245-3.38651428575.54615384622.991902834Change in 2013 to 2014%Change in 2013 to 2014 Yum Brands-20.9847020727-0.0855557798-8.5555779849Change Change in 2008 to 2009 Change in 2009 to 2010Change in 2010 to 2013-28.9138324541-0.0955243609-9.5524360876Current Ratio0.323264650332.32646502580.292915489929.2915489871-0.2098470207-56.571152578-0.0523581925-5.235819249Quick Ratio0.400163519140.01635190740.320645108932.0645108872-0.2891383245-7.35293485290.08487009298.4870092882Cash Ratio0.702476977970.24769778851.727760651172.7760651003-0.5657115258-244.2307692308-0.5357624831-53.5762483131Debt Ratio-0.1573399571-15.733995713-0.0538375676-5.3837567638-0.0735293485-263.7717540289-0.4605445653-46.0544565297Times interest earned 0.270638700627.06387006170.340303951434.0303951368-2.4423076923Cash coverage ratio0.245051932424.50519324360.230847483423.0847483364-2.6377175403

Yum Brands Year %Change in 2008 to 2009%Change in 2009 to 2010%Change in 2010 to 2013%Change in 2013 to 2014Liquidity RatioCurrent Ratio32.326465025829.2915489871-20.9847020727-8.5555779849Quick Ratio40.016351907432.0645108872-28.9138324541-9.5524360876Cash Ratio70.2476977885172.7760651003-56.571152578-5.235819249

Yum BrandsYear %Change in 2008 to 2009%Change in 2009 to 2010%Change in 2010 to 2013%Change in 2013 to 2014Solvency Ratio Debt Ratio-15.733995713-5.3837567638-7.35293485298.4870092882Times interest earned 27.063870061734.0303951368-244.2307692308-53.5762483131Cash coverage ratio24.505193243623.0847483364-263.7717540289-46.0544565297

2008-20092009-20102010-20132013-2014

Sheet2

Sheet3

Sheet1MC Donald Financial Statement donald Income StatementMc Donald Annuals (USD $)View:$%Quarterly10-Y Quarterly ViewYum Brands Annuals (USD $)View:$%Fiscal Period5-Dec6-Dec7-Dec8-Dec9-Dec10-Dec11-Dec12-Dec13-Dec14-DecTTM14-Mar14-Jun14-Sep5-Dec6-Dec7-Dec8-Dec9-Dec10-Dec11-Dec12-Dec13-Dec14-DecTTM

Revenue19,11720,89522,78723,52222,74524,07527,00627,56728,10627,44126,7006,7007,1826,9879,3499,56110,41611,30410,83611,34312,62613,63313,08413,27913,177Cost of Goods Sold12,94013,96314,88114,88313,95314,43716,31916,75117,20316,98616,5594,1844,3974,3067,0707,0947,8138,5647,9348,1209,1409,9859,6599,8429,822

0

Accounts Receivable7948071,0549311,0601,1791,3351,3751,3201,2141,0921,2301,2951,227236220225229239256286301319325373Total Inventories144112125112106110117122124110991061111058593128143122189273313294301276Total Equity15,14615,45815,28013,38314,03414,63414,39015,29416,01012,85311,40316,14816,15513,6261,4491,4521,139-1081,0251,5761,8232,1542,1661,5471,707Total Asset 6,527714883168834901386958345

Mc Donald Annuals (USD $)View:$%Quarterly10-Y Quarterly ViewYum Brands Annuals (USD $)View:$%8-Dec9-Dec10-Dec11-Dec12-Dec13-Dec14-DecAsset management ratios Inventory turnover 59.888111888165.032786885242.96296296332.853741496632.6976744186Day's sales in inventory 6.09469873895.61255356698.495689655211.109845739711.1628733997Receivables turnover 49.362445414845.338912133944.3085937541.015673981240.8584615385Day's sales in receivables7.39428520888.05047988198.23767962628.89903699178.9332781083Total asset turnover1.73188294781.51594851711.3639971141.5047728581.5912522469

Change Change in 2008-2009Change in 2009-20010Change in 2010-2013Change in 2013-2014inventory turnover 0.0859047787-0.3393645725-0.2353008445-0.0047503593day sales in inventory -0.07910894250.51369417750.30770381110.004773033receivables turnover -0.0815100072-0.0227248149-0.0743178578-0.0038329845day sales in receivables0.08874348970.02325324040.08028442420.0038477328total asset turnover-0.1246818851-0.10023520020.10320824180.0574700616

Yum BrandsYear %Change in 2008-2009%Change in 2009-20010%Change in 2010-2013%Change in 2013-2014Asset management ratios Inventory turnover 8.5904778677-33.9364572538-23.5300844476-0.4750359347Day's sales in inventory -7.910894248251.369417750130.77038110690.4773032969Receivables turnover -8.1510007196-2.2724814853-7.4317857781-0.3832984503Day's sales in receivables8.87434896782.32532404378.02844242010.3847732803Total asset turnover-12.4681885094-10.02352001810.32082418085.7470061632

https://www.gurufocus.com/membership/upgrade.php?ref=financialshttp://www.gurufocus.com/term/Revenue/MCD/Revenue/McDonald%2527s%2BCorphttp://www.gurufocus.com/term/COGS/MCD/Cost%252Bof%252BGoods%252BSold/McDonald%2527s%2BCorphttp://www.gurufocus.com/term/Inventory/MCD/Total%252BInventories/McDonald%2527s%2BCorphttp://www.gurufocus.com/term/Accts%20Rec./MCD/Accounts%252BReceivable/McDonald%2527s%2BCorphttp://www.gurufocus.com/term/Total%20Equity/MCD/Total%252BEquity/McDonald%2527s%2BCorphttps://www.gurufocus.com/membership/upgrade.php?ref=financialsSheet2

Sheet3

Sheet1Change Change in 2008 to 2009 %Change in 2008 to 2009Change in 2009 to 2010%Change in 2009 to 2010Change in 2010 to 2013%Change in 2010 to 2013Change in 2013 to 2014%Change in 2013 to 2014Current RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Quick RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Cash RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!

MC Donald Change Change in 2008 to 2009 %Change in 2008 to 2009Change in 2009 to 2010%Change in 2009 to 2010Change in 2010 to 2013%Change in 2010 to 2013Change in 2013 to 2014%Change in 2013 to 2014Liquidity Ratio Current Ratio-0.1755055632-17.55055632260.30696581230.69658119660.06653703726.6537037184-0.0437963884-4.3796388372Quick Ratio-0.1748193169-17.48193169430.314860536631.48605365770.06721857526.7218575175-0.0454860021-4.5486002148Cash Ratio-0.2607815342-26.07815342310.358144975535.81449755390.0819746558.1974655039-0.143583199-14.3583199032

Sheet2

Sheet3

Sheet1Change Change in 2008 to 2009 %Change in 2008 to 2009Change in 2009 to 2010%Change in 2009 to 2010Change in 2010 to 2013%Change in 2010 to 2013Change in 2013 to 2014%Change in 2013 to 2014Current RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Quick RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Cash RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Debt RatioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Times interest earned ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!Cash coverage ratioERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!ERROR:#REF!

MC Donald Change Change in 2008 to 2009 %Change in 2008 to 2009Change in 2009 to 2010%Change in 2009 to 2010Change in 2010 to 2013%Change in 2010 to 2013Change in 2013 to 2014%Change in 2013 to 2014Solvency Ratio Debt Ratio0.01111426221.11142622390.01240952351.24095235490.03789000433.78900043350.110486392211.0486392241Times interest earned 0.215885579321.58855792890.174362617417.43626174130.08747203958.747203951-0.1540371697-15.4037169668Cash coverage ratio0.113507113611.3507113570.100902864910.09028648930.07328673297.3286732864-0.0517699501-5.1769950126

Sheet2

Sheet3