McDonald's & Wendy's Financial Statement Comparison

The financial statements of McDonald's and Wendy compare the financial statement analysis projects. I compare the two companies in this project are McDonald and Wendy. Both companies are competitors in the same industry. I am using the information of the 2005 financial statements. Ratio of assets to liabilities When comparing the ratio of McDonald's and Wendy's assets to liabilities, it is necessary to divide the company's total debt by the total assets. Essentially, the D / A ratio is the main indicator of corporate debt management.

The consolidated financial statements of McDonald's and Wendy are consistent in each report, including the balance sheet, income statement, cash flow statement, income statement and consolidated income statement. In one statement, the first three statements are the requirements of listed companies and generally accepted accounting principles (GAAP), the latter two statements are used to clarify the assets, liabilities and owner's capital of each company will be used.

DuPont's analysis of McDonald 's financial statements shows that McDonald' s arises from financial difficulties in 2001-2002, but needs to constantly make efforts to achieve its goals. McDonald's profit margin across the income statement is very low. In 2003 it was 0.11. This means that for all the dollars they sell, they can earn only 11 cents. This has increased by nearly 6 cents from 2002, so this indicates that the company is doing a better job of reducing expenses. McDonald 's profit margin is very low because it is expanding both in Japan and overseas. They continue to invest money in new facilities and franchises. This will significantly reduce net profit and usually lower profit margins.

Both companies have a profit. McDonald's seems to be a good company with a net profit margin of 11.95%, Wendy is 43%. Wendy seems to have higher cost and its profit margin is lower than industry standard. Both companies have acceptable profitability and are headed for a positive direction