Question

In: Finance

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.

Debt Management

Formula

Calculation

Ratio

Debt ratio

total debt/total asset

Interest coverage

EBIT/Interest Charge

Profitability

Net profit margin

net income/total operating revenue

Net return on assets

net income/total operating asset

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

Solutions

Expert Solution

The following data are based on Latest Annual and quarterly reports of McDonalds official website

Debt Management

Formula

Calculation

Ratio

Debt ratio

total debt/total asset

34177200/47510800

0.72

Interest coverage

EBIT/Interest Charge

2309800/283411

8.15

Profitability

Net profit margin

net income/total operating revenue

1572200/2292600

0.6857

Net return on assets

net income/total operating asset

1572200/47510800

0.0331

Return on common equity

EBIT/ Capital employed

2309800/43889800

0.0526

Dividend payout ratio

total cash dividends/net income

1002749/1572200

63.78%

Market Value

P-E ratio

(market price/share) / earnings/share

197.63/7.88

25.08

Market/Book

(market price/share) / (book value/share)

197.63/-11

-17.96

Dividend yield

(dividend per share) / market price per share

4.84/197.63

2.45%


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