MacDonald's financial statement analysis

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This is a type of company headquartered in the United States. It is a company that deals with first goods. We have been offering our products at a fairly fair price compared to our competitors. It was opened by two brothers who run the company. After serving people at home and abroad, it grew steadily. Opened over 10,000 stores in a short period of time. The history of this burger shows that the company has thrived in recent years. McDonald's believes in achieving that goal.

It empowers its staff and train them to facilitate and offer quality services in the restaurant. This restaurant was ranked number one in the magazine back in the year twenty twelve. This shows that the corporation is tied in producing quality services and the customers appreciate in cooperating with them to give them profitable attempts.

Financial analysis

McDonalds is showing a great gain and improvement in terms of monetary handling and it depict a greater profit margin. Considering back in the year twenty ten, the corporation gained a lot of profit. Analyses from the financial ratios as per that year it show a great improvement in term of percentages. This was achieved by introducing things like the menu that ware vaporable to everybody. It was also as a result of introducing new items in their menu like good foods like the chickens and chips and other favorable food types that made the consumers to directly improve and increase their consumption volumes (Poser, 1983).

Apart from the organization introducing new menu items so that it can improve their consumption rate, it then ended in implementing new policies that are favorable to the customers. One of the policies that was introduced is the extending working hours so that it could fit to the demands of the late customers who late in the works (McDonald T. J., 2017). This approach lead to winning of the potential customers who increased the profit margin of the corporation.

In the year 2012 the profit margin of the corporation was almost twelve percent. This was as a result of the extension of the premises to satisfy and accomplish the objective of the corporation. In simple terms the corporation was doing well and as a result it was ranked as the most improved international organization with the highest profit margin.

The focus of the basic earning power of the McDonald hamburger was very high. The reason behind this was the fact that it did not value to buy many premises. What McDonald did, it maximized the utilization of the premises leading to the return. The organization did not deal with adding or buying extra premises but went on in utilizing the one it had to profitably improve rather than buying very great premises and the fail to utilize (McDonald T. J., 2017). This are some of the concentrations that the organization based it views with so that it could make it to thrive and obtain the profit margin it displayed in that year.

The balance sheet for the year was as follows

Annual Income Statement (values in 000's)

Current assets

Cash and Cash Equivalents

$1,223,400

$7,685,500

$2,077,900

$2,798,700

Short-Term Investments

$0

$0

$0

$0

Net Receivables

$1,474,100

$1,298,700

$1,214,400

$1,319,800

Inventory

$58,900

$100,100

$110,000

$123,700

Other Current Assets

$2,092,200

$558,700

$783,200

$807,900

Total Current Assets

$4,848,600

$9,643,000

$4,185,500

$5,050,100

Long term assets

Long-Term Investments

$725,900

$792,700

$1,004,500

$1,209,100

Fixed Assets

$21,257,600

$23,117,600

$24,557,500

$25,747,300

Goodwill

$2,336,500

$2,516,300

$2,735,300

$2,872,700

Intangible Assets

$0

$0

$0

$0

Other Assets

$1,855,300

$1,869,100

$1,744,600

$1,747,100

Deferred Asset Charges

$0

$0

$0

$0

Total Assets

$31,023,900

$37,938,700

$34,227,400

$36,626,30

Current liabilities

Accounts Payable

$2,696,300

$2,950,400

$2,747,900

$3,170,000

Short-Term Debt / Current Portion of Long-Term Debt

$77,200

$0

$0

$0

Other Current Liabilities

$694,800

$0

$0

$0

Total Current Liabilities

$3,468,300

$2,950,400

$2,747,900

$3,170,000

Long-Term Debt

$25,878,500

$24,122,100

$14,935,700

$14,129,800

Other Liabilities

$2,064,300

$2,074,000

$2,065,900

$1,669,100

Deferred Liability Charges

$1,817,100

$1,704,300

$1,624,500

$1,647,700

Misc. Stocks

$0

$0

$0

$0

Minority Interest

$0

$0

$0

$0

Total Liabilities

$33,228,200

$30,850,800

$21,374,000

$20,616,600

Stock holders’ equity

Common Stocks

$16,600

$16,600

$16,600

$16,600

Capital Surplus

$6,757,900

$6,533,400

$6,239,100

$5,994,100

Retained Earnings

$46,222,700

$44,594,500

$43,294,500

$41,751,200

Treasury Stock

($52,108,600)

($41,176,800)

($35,177,100)

($32,179,800)

Other Equity

($3,092,900)

($2,879,800)

($1,519,700)

$427,600

Total Equity

($2,204,300)

$7,087,900

$12,853,400

$16,009,700

Total Liabilities & Equity

$31,023,900

$37,938,700

$34,227,400

$36,626,300

The trending issue in the balance sheet above according to the year twenty twelve show the good progress of the McDonald. Then now we can see the trend and if the other balance sheets are considered for at least three years then the thrive is commendable. The management of the McDonald is doing much in managing the corporation.

References

Hansen, J. P. (1990). Theory of simple liquids. Elsevier. (press ed.). chicago: oxford university press.

McDonald, R. a. (2017). Parallel play: Startups, nascent markets, and the search for a viable business model. boston: oxford university press.

McDonald, T. J. (2017). Determination of VH Family Usage in B-Cell Malignancies via the BIOMED-2 IGH PCR Clonality Assa. American Journal of Clinical Pathology, 549-556.

Poser, C. M. (1983). New diagnostic criteria for multiple sclerosis: guidelines for research protocol. Annals of neurology, 227-231.

March 15, 2023
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