Financial Analysis of the McDonalds Company (1580 words)

Financial Analysis of the McDonalds Company Stock ticker symbol, exchange where traded _________ Address of company headquarters _________ Company phone number __________ PART 1, COMPANY OVERVIEW: a. Brief description of the company (one paragraph, briefly summarizing the company’s business) b. Company history (origin, major developments, etc.) c. Organization (describe how the company is structured) d. Main products and services (describe what the company sells; how it makes money) e. Geographic area of operations (describe where the company sells its products) f. Recent developments (list recent major news stories, if any) PART 2, FINANCIAL OVERVIEW: a. Sales and Income Record: ------------- Fiscal Years ------------- 2008 2009 2010 2011 2012 -- Sales ____ ____ ____ ____ ____ -- Percent change in sales each year ____ ____ ____ ____ -- Net Income ____ ____ ____ ____ ____ -- Percent change in net income each year ____ ____ ____ ____ GRAPH OF SALES & NET INCOME, FY 2008 - 2012 -| -| -| (Plot Sales and Net Income for the -| last five fiscal years on the graph) -| -| (Recommend you prepare the graph in Excel, -| then copy and paste it into the report) -| -| -| -|--------|---------|---------|---------| 2008 2009 2010 2011 2012 COMMENTS: Comment on the trends you see in your numbers and on the graph. Be sure to include comments! The numbers and the chart are meaningless by themselves. Comment on what you see. b. Expense Distribution: FY 2012 Major Expenses: ________ (list the major expense categories ________ from the latest income statement) ________ PIE CHART OF EXPENSES, FY 2012 Note – Do not “explode” the pie slices COMMENTS: Comment on the company’s expense distribution. c. Assets Distribution: Year-end FY 2012 Assets: Cash ________ Accounts receivable ________ Inventory ________ Fixed Assets ________ Other Assets ________ PIE CHART OF ASSETS, Year-end FY 2012 COMMENTS: Comment on the company’s asset distribution. c. Capital Structure: Year-end FY 2012 Capital Structure: Current Liabilities ________ Long-term & Other Liabilities ________ Preferred Stock (if any) ________ Common Equity ________ CAPITAL STRUCTURE PIE CHART, Year-end FY 2012 COMMENTS: Comment on the company’s capital structure. PART 3, RATIO ANALYSIS: (1) LIQUIDITY: FY 2011 FY 2012 Current Ratio: McDonalds ____ ____ Wendy’s ____ ____ Quick Ratio: McDonalds ____ ____ Wendy’s ____ ____ Comments On McDonalds Liquidity: Be sure to include comments! The numbers are meaningless by themselves. Comment on what you see. What story do the numbers tell? (2) ASSET MANAGEMENT FY 2011 FY 2012 Total Asset Turnover: McDonalds ____ ____ Wendy’s ____ ____ Average Collection Period: McDonalds ____ ____ Wendy’s ____ ____ Comments On McDonalds Asset Management: (3) DEBT MANAGEMENT: FY 2011 FY 2012 Total Debt to Total Assets: McDonalds ____ ____ Wendy’s ____ ____ Times Interest Earned: McDonalds ____ ____ Wendy’s ____ ____ Comments On McDonalds Debt Management: (4) PROFITABILITY: FY 2011 FY 2012 Net profit Margin: McDonalds ____ ____ Wendy’s ____ ____ Return on Assets: McDonalds ____ ____ Wendy’s ____ ____ Return on Equity: McDonalds ____ ____ Wendy’s ____ ____ Modified Du Pont Equation, FY 2012: McDonalds Wendy’s Net Profit Margin ____ ____ Total Asset Turnover ____ ____ Equity Multiplier ____ ____ Comments On McDonalds Profitability: (5) MARKET VALUE RATIOS: FY 2011 FY 2012 PE Ratio: McDonalds ____ ____ Wendy’s ____ ____ Market to Book Ratio: McDonalds ____ ____ Wendy’s ____ ____ Comments On McDonalds Market Value Ratios: PART 4, CONCLUSIONS AND RECOMMENDATIONS - Summarize your analysis. Review your comments in the financial analysis section and provide your assessment of the overall status of the firm. Include any recommendations you think are appropriate. - List any other recommendations you have for the firm in view of your analysis