Analyze the current profitability and risk of the firm

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Review McDonald Corp.'s 2019 Financial Statements.

Question 1. Compute Working Capital, Return on Invested Capital (ROIC), DSO, DPO, DIO and CCC ratio for 2019 and 2018 and provide analysis and explanation of above ratios and cashflow from operating activities, that impact Company's profitability and liquidity.

Question 2. Provide your comments on how Porter's Five Forces impact McDonald's business

  1. Rivalry among Existing Firms
  2. Threat of New Entrants
  3. Threat of Substitutes
  4. Buyer Power
  5. Supplier Power

Question 3. Provide your comments on how following steps of the financial statement analysis impact the company?

  1. Identify the economic characteristics of the industry in which the firm operates.
  2. Identify the firm's strategies to gain and maintain competitive advantage in its industry.
  3. Analyze the current profitability and risk of the firm.

Reference no: EM132665385

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