Solution-Compute a recent five-year average of the ratios

Compute a recent five-year average of the ratios

Assignment Help Accounting Basics

Reference no: EM133114690

Question - Compute a recent 5-year average of the following ratios for three companies of your choice (attempt to select diverse firms):

Retention rate
Company	2021	2020	2019	2018	2017	Average
McDonald's	0.48	0.21	0.41	0.45	0.41	0.392
Starbucks	0.5	-1.07	0.51	0.61	0.5	0.21
Texas Roadhouse	0.71	0.2	0.41	0.57	0.56	0.49

Net Profit margin
Company	2021	2020	2019	2018	2017	Average
McDonald's	32.33%	24.63%	28.20%	27.86%	22.76%	27.16%
Starbucks	14.45%	2.87%	13.81%	11.98%	19.29%	12.48%
Texas Roadhouse	6.61%	1.29%	6.35%	6.43%	5.95%	5.33%

Equity turnover
Company	2021	2020	2019	2018	2017	Average
McDonald's	-5.482	-2.455	-2.602	-3.360	-6.983	-4.176
Starbucks	-5.461	-3.013	-4.253	21.128	4.107	2.502
Texas Roadhouse	0.080	0.259	0.301	0.260	0.261	0.232

Total asset turnover
Company	2021	2020	2019	2018	2017	Average
McDonald's	0.34	0.38	0.46	0.64	0.70	0.50
Starbucks	1.00	1.00	1.20	1.30	1.60	1.22
Texas Roadhouse	1.03	1.10	1.39	1.67	1.67	1.37

Total assets/equity
Company	2021	2020	2019	2018	2017	Average
McDonald's	-11.65	-6.73	-5.79	-5.24	-10.34	-7.95
Starbucks	-5.90	-3.76	-3.08	20.65	2.64	2.11
Texas Roadhouse	0.0024	0.0023	0.0017	0.0014	0.0014	0.0018

Based on these ratios, explain which firm should have the highest growth rate of earnings.

Reference no: EM133114690

Questions Cloud

What is the npv of the project under assumption : This means that the project will be financed so that the Debt/Equity ratio of Green Paper will remain at 0.3. What is the NPV of the project under this assumpti

Principles of computer security : Principles of Computer Security. What was the most useful takeaway for you from this workshop's reading?

Standard deviation of the call option return : Suppose that in a one-period binomial model there is a European style call option that pays $100 in the up scenario and $0 in the down scenario. The option is t

Types of cryptographic methods : Classify the types of cryptographic methods that are currently in use and describe their functionality.

Compute a recent five-year average of the ratios : Question - Compute a recent 5-year average of the following ratios for three companies of your choice (attempt to select diverse firms)

Explain the expected rate of return on the portfolio : If your portfolio consists of 20% RJH (expected return 16%) 30% PAV (expected return -2%) and 50% MB (expected return 8%) what is the expected rate of return on

Explain the bigger effect on cash flow : What has a bigger effect on cash flow, factors and decisions inside the company, or factors and decisions outside the company? Why?

Significant risk of abc defaulting : ABC corporation is approaching financial distress, i.e., its bond holders believe there is a significant risk of ABC defaulting on its upcoming interest payment

What is the market value : Question - What is the market value of a $1,000 face-value bond with a 10% coupon rate when the market's rate of return is 9%

User Account

All Pages

Compute a recent five-year average of the ratios

Reference no: EM133114690

Reference no: EM133114690

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT