Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

تمرين 74

Interpreting Debt-to-Assets, Asset Turnover, and Net Profit Margin Ratios
The following ratios for McDonald's Corporation and its competitor YUM Brands, Inc. , (the owner of KFC, Pizza Hut, and Taco Bell) were obtained from reuters.com/finance. Compare the two companies based on the following ratios:

Required:
1. Which company appears to rely more on debt than stockholders' equity for financing Describe the ratio that you used to reach this decision, and explain what the ratio means.
2. Which company appears to use its assets more efficiently Describe the ratio that you used to reach this decision, and explain what the ratio means.
3. Which company appears to better control its expenses Describe the ratio that you used to reach this decision, and explain what the ratio means.