麥當勞財務分析

1、JISHOUUNIVERSITYTHE ACCOUNTING BILINGUAL TITLE：The Analysis Of McDonald's Financial Statements CLASS：Class three Grade 11 accounting ACAMEDY： School Of Business TEAM MEMBERS: 李永花（201320298） 劉夢雅（201320302） 李金蓮（201320306） 鄒 聰 (201320318) 王鐘君（201320322） 湯 盈 (201320334) CONENTSPARTI 1.BACKGROUND3PAR

2、T II 2.DESCRIPTIVE ANALYSIS3PART III 3.SHORT-TERM SOLVENCY ANALYSIS4 3.1 ANALYSIS OF CURRENT ASSETS4 3.1.1 CASH4 3.1.2 ACCOUNTS RECEIVABLE5 3.1.3 INVENTORY6 3.2 ANALYSISOFTHE CURRENT LIABILITIES6 3.2.1 ACCOUNTS PAYABLE6 3.3 ANALYSIS OF RATIOS7 3.3.1 WORKING CAPITAL7 3.3.2 CURRENT RATIO8 3.3.3 QUICK

3、RATIO9 3.3.4 CASH RATIO10 3.3.5 COMMON-SIZE ANALYSIS (Vertical and Horizontal)11PART IV 4.LONG-TEEM DEBT-PAYING ABILITY12 4.1 THE INCOME STATEMENT ANALYSIS12 4.2 ANALYSIS OF THE BLANCE SHEET13PART V 5.PROFITABILITY14 5.1 THE CONTENT OF PROFITABILITY ANALYSIS15 5.2 DUPONT ANALYSIS TABLE16 5.3 THE PRO

4、FIT INDEX ANALYSIS17 5.3.1 OPERATING INCOME MARGIN17 5.3.2RETURN ON ASSETS17 5.3.3 RETURN ON NET ASSETS175.3.4 EARNING PER SHARE18The Analysis Of McDonald's Financial StatementsPARTI 1.BACKGROUND McDonald's is the world's largest fast food chain enterprise.From 1955 the McDonald brothers

5、 and ray , founder of the Illinois opened its first restaurant in the United States today, it is in 121 countries and regions around the world have opened more than 32000 restaurants, global sales of more than $40 billion.McDonald's corporate headquarters is located in the United States, Illinoi

6、s, is an international company with billions of dollars of assets, McDonald's restaurants all over hundred countries on six continents around the world.McDonalds is to sell burger chain operation ,mainly,now has become a global restaurant industry most valuable brands.In many countries, McDonald

7、's represents a kind of American way of life, and now is still in a quick rapid development trend.PART II 2.DESCRIPTIVE ANALYSIS Can be seen from the development of McDonald's, McDonald's grasp in the segment of the market positioning is very accurate, this is also one of the important r

8、eason for the success of McDonald's.Consumer market segmentation is mainly based on the geographical factors, human factors, psychological factors, purchasing behavior factors, each consumer group is a market segment, each segment is by having the same needs and purchase desire of consumer group

9、s. McDonald's is based on the geographical population and psychological factors in the accurate market segmentation, and implement the corresponding strategy so as to achieve its marketing objectives.PART III 3.SHORT-TERM SOLVENCY ANALYSIS Short-term debt paying ability refers to the enterprises

10、 use current assets to repay the current liabilities. For creditors, the enterprise will have fully repay ability to guarantee. For investors, if the enterprise short-term solvency problems, will contain business managers spend a lot of energy to raise funds, to cope with debt, also will increase th

11、e difficulty of the enterprise financing, or increase the cost of temporary emergency financing, affect the profitability of the enterprise.3.1 ANALYSIS OF CURRENT ASSETSCurrent Assets (Current Assets) refers to the enterprise can be in one year or within an operating cycle longer than a year to liq

12、uidate or use of Assets, an indispensable part of enterprise Assets.Current assets in the turnover of the transition, from monetary form, in turn, change its shape, finally returned to the monetary form (monetary funds and reserve funds, fixed capital to production for capital to finished product, m

13、onetary funds), various forms of closely combining with the production circulation of funds, rotation speed, strong liquidity .To strengthen the audit of current assets business, which is beneficial to determine the legitimacy of the current assets business, compliance, and to check the correctness

14、of all current assets business accounting, reveals the shortcomings of its existence, to improve efficiency in the use of liquid assets.3.1.1 CASHCash refers to the medium of exchange can immediately put into circulation.It has universal acceptability, can be effectively used to buy goods immediatel

15、y, goods, services, or to repay the debt.It is the enterprise in the liquidity of the strongest assets.Can all controlled by the enterprise to use the paper silks, COINS.Cash is one of China's enterprises accounting general ledger accounts in the balance sheet into the monetary funds, listed as

16、current assets, but has a special use cash only as a fund or investment project as non-current assets.ACCOUNTANT COURSEDATEDATEDec.31, 2013Dec.31, 2012Dec.31,2011Current assetsCash and equivalents$2,798.70 $2,336.10 $2335.70Total current assets$5,050.10$4,922.10$4403.00 so we learned that in 2013 th

17、e highest cash and cash equivalents.Visible, showed a trend of increasing capital, from the point of longitudinal comparative analysis, three years accounted for 55.42% of the ratio of current assets are cash, 46.80%, 53.05%.3.1.2 ACCOUNTS RECEIVABLEAccounts receivable (Receivables) accounts receiva

18、ble is to show the enterprise in the process of normal operation for selling goods, products, services and other business, should charge the money to buy units, including shall be borne by unit of choose and buy or accept labor units of taxes, buying all kinds of freight paid by the buyer, etc.ACCOU

19、NTANT DATEDATEDec.31,2013Dec.31,2012Dec.31.2011Current assetsAccounts and notes receivable$1,319.80$1,375.30$1334.70Total current assets$5,050.10$4,922.10$4403.00The table shows that the amount of the in nearly three years of accounts receivable, respectively, at $1319.8, $1375.3, $1334.7, so we hav

20、e learned 2013 accounts receivable.Obviously, money is constantly decreasing potential, from the point of longitudinal comparative analysis, three years accounted for 26.13% of the ratio of current assets are cash, 27.94%, 30.31%.3.1.3 INVENTORYInventory refers to the enterprise or business held for

21、 sale in the daily activities of raw materials or products, in the production process in the product, in the production process or provide labor services process consumption of materials, materials, etc., sales, Inventory, etc.Inventory difference in illiquid assets, such as fixed assets is the most

22、 basic characteristics, enterprise to hold inventory of the final purpose is to sell, whether it is available for direct sales, such as enterprise of finished goods, goods, etc.;Still need to sell after further processing, such as raw materials, etc.ACCOUNTANTDATEDec.31,2013Dec.31,2012Dec.31,2011Cur

23、rent assetsInventories, at cost, not in excess of market$123.7 $121.7 $116.8 By a table the stock in the amount of nearly three years, respectively, at $123.7, $121.7, $116.8, so we learn about the stock of 2013 the most.Visible, the fund was an increasing trend, from the point of longitudinal compa

24、rative analysis, three years accounted for 2.45% of the ratio of current assets are cash, 2.47%, 2.65%.3.2 ANALYSISOFTHE CURRENT LIABILITIES Short-term debt is also called the Current Liabilities (Current Liabilities), it is to point to will in 1 year (including 1 year) or within an operating cycle

25、longer than a year to repay debt, including short-term loans payable, notes payable, accounts payable, advance payments, wages payable, deal with welfare funds, dividends payable, taxes payable, to suspend the accounts payable, accrued expenses, and other long-term borrowing due within one year, and

26、 so on.3.2.1 ACCOUNTS PAYABLE Accounts payable refers to for purchase of materials, goods or labor supply of debt, this is the buyer and the seller on the purchase and marketing activities of the materials and pay the loan in time inconsistency of debt.ACCOUNTANTDATEDec.31,2013Dec.31,2012 Dec.31,201

27、1Current liabilitiesAccounts payable$1086.00$1141.9$961.3Total current liabilities$3,170.00$3,403.10$3509.2By a table the inventory of the amount is $1086, respectively, in nearly three years at $1141.9, $961.3, so we know that the accounts payable center in 2013.Visible, the fund was an increasing

28、trend, from the point of longitudinal comparative analysis, three years cash accounts for the ratio of current assets are 34.26%, 33.55%, 27.39%.3.3 ANALYSIS OF RATIOSRatio analysis is to use company published financial information, predict it could achieve future profit estimates.Is divided into fo

29、ur categories: liquidity ratio, management ratio, profit-seeking ratios, leverage ratios.Ratio analysis including the Ratio between the balance sheet or profit and loss statement projects, they can often to the company's level of risk, the respect such as the ability to create profits for shareh

30、olders to provide unique perspective.These ratios of simple calculation (often divide a data by another data) as well as to their interpretation is what we call the ratio analysis.3.3.1 WORKING CAPITALWorking capital also known as working capital.General working capital is also called total working

31、capital, refers to an enterprise on the funds in liquid assets, including cash, marketable securities, accounts receivable, inventory and other money.Enterprises in the special working capital refers to a certain point of the difference between the current assets and current liabilities.Compute work

32、ing capital capital as follows：Working Capital =Current Assets Current LiabilitiesYear Ended Dec 31，2013 -2011（In millions）201320122011Current assets A$5505.10$4922.10$4403.00Current liabilities B$3170.00$3403.10$3509.2Working capital A-B $2335.1$1589.00$893.8 Exhibit 3-3-1presents the working capit

33、al for MCD at the end of 2011 and 2013. MCD had $2,335,100,00.In working capital 2013 and $1,589,000,000 in working capital in 2012 and $893,800,000 in working capital.these figures tend to be understated because some of the current assets ,such as inventory ,may be understated ,based on the these f

34、igures .The inventory as reported may be much less than its replacement cost. The difference between the reported inventory amount and the replacement amount is normally material when the firm is using LIFO inventory. The difference may also be material when using one of the other cost methods . The

35、 current working capital amount should be compared with past amounts to determine if working capital is reasonable.Because the relative size of a firm may be expanding or contracting,comparing the working capital of one firm with that of another firm is usually meaningless because of their size diff

36、erences. If the working capital appears to be out of line,the reasons should be found by analyzing the individual current asset and current liability accounts3.3.2 CURRENT RATIOLiquidity ratio is the ratio of current assets to current liabilities. Liquid assets mainly include the monetary funds, tra

37、dable financial assets, receivables and prepayments, the inventory and non - current assets, due within one year, usually expressed in the final total current assets in the balance sheet.Current liabilities include short - term borrowing, tradable financial liabilities, and advance payments, all kin

38、ds of payable taxes payable, non - Current liabilities due within 1 year, etc., are usually expressed in the final total Current liabilities in the balance sheet.Its computation formula for:Current Ratio= Current Assent Current LiabilityYear Ended Dec 31，2013 2011（In millions）201320122011Current ass

39、ets A$5050.1$4922.1$4403.00Current liabilities B$3170.00$3403.10$3509.2Current ratioA/B1.591.451.25Exhibit 3-3-2 presents the current ratio for MCD at the end of 2013 and 2011.For MCD the current ratio was 1.59 at the end of 2013 and 1.45 at the end of 2012 and 1.25 at the end of 2011. This suggests

40、 that the flow rate of the MCD also needs to improve.Current ratio is an important measure of corporate short-term solvency financial indicators, the higher the ratio, the stronger ability to repay its current liabilities of that enterprise, repaid safeguard, the greater the current liabilities.Howe

41、ver, high liquidity ratio also is not a good thing, because liquidity ratio is too high, companies may be stranded on the liquidity of funds too much, failed to effectively exploit, may affect corporate profitability.According to the experience, the current ratio in about 2 more appropriate, MCD com

42、pany's current ratio is 1.5, you also need to improve.In fact, the analysis of current ratio should be combined with the characteristics of different industries, liquid assets structure and the various factors such as liquid assets actual cash ability.Some industry liquidity ratio is higher, and

43、 some industry is low, cannot treat as the same.Experience judgment, however, this alone is not reliable, sometimes the liquidity ratio is higher, but its short-term debt paying ability is not strong, because could be the result of inventory backlog or unsold, and the enterprise is also easy to forg

44、e the ratio, to cover up its solvency.3.3.3 QUICK RATIOQuick ratio is refers to the ratio of quick assets to current liabilities.It is used to measure of enterprise current assets can be converted into cash immediately to repay the ability of current liabilities.Quick assets include the monetary fun

45、ds, short-term investments, notes receivable, accounts receivable, can be realized in a short time.And inventory in liquid assets and non-current assets due within 1 year and other liquid assets, should not be included.Compute the quick ratio follows：Quick Ratio= Current AssetsInventory Current Liab

46、ilityYear Ended Dec 31，2013 2011（In millions）201320122011Current Assets$5050.10$4922.10$4403.00Less：Ending inventory$123.70$121.70$116.80Remaining Current assets <A>$4926.40$4800.40$4286.20Current Liability <B>$3170.00$3403.10$3509.20Quick ratio <A/B>1.551.411.22For MCD,the quick r

47、atio was 1.55 at the end of 2013 and 1.41 at the end of 2012 and 1.22 at the end of 2011.this represents a positive trend.According to the experience, it is generally believed quick to 1 ratio is more appropriate, MCD quick ratio is about 1.5, should fall within the normal range. But in the actual a

48、nalysis, should according to the nature of the enterprise and other factors to comprehensive judgment, cannot treat as the same. The important factors that affect the credibility of the quick ratio is usually liquidity of accounts receivable, if the enterprise has the most difficult to recover in th

49、e accounts receivable, may become bad debts, so quick ratio can't truly reflect the solvency of the enterprise. Therefore, in the use of quick ratio analysis enterprise short-term debt paying ability, should be combined with the accounts receivable aging structure is analyzed.3.3.4 CASH RATIOSom

50、etimes an analysis needs to view the liquidity of a firm from an extremely conservative point of view.For example ，the company may have pledged its receivables and its inventory ,or the analysis suspects Severe liquidity problems with inventory and receivables.Compute the cash ratio as follows:Cash

51、Ratio =Cash Equivalents +Marketable Securities Current Liabilities Years Ended Dec 31,2013 and 2011（In millions） 2013 2012 2011Cash and equivalents<A>$2798.7$2336.1$2335.7Total current liabilities<B>$3170$3403.1$3509.2 Cash Ratio<A/B>0.880.690.67Cash ratio can reflect enterprise

52、9;s solvency directly, because cash is the ultimate means of enterprises to repay the debt, if the company lack of cash may occur payment difficulties, facing a financial crisis.Cash ratio is high, therefore, that the enterprise has a better ability to pay, is guaranteed to repay debt.But if the rat

53、io is too high, could mean that companies have too much cash asset class low profitability, the assets of the enterprises failed to get effective use.3.3.5 COMMON-SIZE ANALYSIS (Vertical and Horizontal)The analysis is based on a project for the fixed reference, by reference of other items, calculate

54、 the accounts for the proportion of the references, the analysis can be used in conjunction with change analysis.For example can be based on the analysis of an enterprise in the income statement in two years sales cost, management cost accounting for the proportion of income details about enterprise

55、's profit.(A) Longitudinal comparative analysis due to the current ratio, quick ratio and cash ratio is the main indicator of evaluation enterprise short-term debt paying ability, so from the three metrics, McDonald's company's short-term debt paying ability is enhanced.But McDonald'

56、s current ratio is less than 2, the enterprise short-term debt paying ability to strengthen, should reduce liquidity is weak in stock, increase liquidity;Quick ratio is in accordance with industry standards.At the same time, the part of enterprise assets can easily cope with the current liabilities

57、of the enterprise, it plays a positive role in improving the company reputation.(B) Horizontal comparative analysis in the same industry.Select several other catering industry representative company yum and QJD comparison analysis, including McDonald's in the restaurant industry upstream, QJD medium level in the restaurant industry.In 2013, the data as a reference, through and compare different compan