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McDonald's Financial Ratio Analysis

This document outlines three assurance of learning exercises related to analyzing McDonald's Corporation. The first exercise asks students to calculate 20 financial ratios for McDonald's and identify them as strengths, weaknesses, or neutral factors. It also instructs students to obtain McDonald's ratio information from specified websites. The second exercise instructs students to form teams to construct an internal factor evaluation (IFE) matrix for McDonald's by identifying and prioritizing internal factors. It asks teams to compare IFE matrices and discuss differences. The third exercise asks students to construct an IFE matrix for their university to evaluate its major strengths and weaknesses.

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292 views1 page

McDonald's Financial Ratio Analysis

This document outlines three assurance of learning exercises related to analyzing McDonald's Corporation. The first exercise asks students to calculate 20 financial ratios for McDonald's and identify them as strengths, weaknesses, or neutral factors. It also instructs students to obtain McDonald's ratio information from specified websites. The second exercise instructs students to form teams to construct an internal factor evaluation (IFE) matrix for McDonald's by identifying and prioritizing internal factors. It asks teams to compare IFE matrices and discuss differences. The third exercise asks students to construct an IFE matrix for their university to evaluate its major strengths and weaknesses.

Uploaded by

chaterji_a
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ASSURANCE OF LEARNING EXERCISES

Assurance of Learning Exercise 4A


Performing a Financial Ratio Analysis for McDonalds Corporation (MCD)
Purpose Financial ratio analysis is one of the best techniques for identifying and evaluating internal strengths and weaknesses. Potential investors and current shareholders look closely at firms financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix. Instructions Step 1 On a separate sheet of paper, number from 1 to 20. Referring to McDonalds income statement Step 2 Step 3
and balance sheet (pp. 3132), calculate 20 financial ratios for 2008 for the company. Use Table 4-7 as a reference. In a second column, indicate whether you consider each ratio to be a strength, a weakness, or a neutral factor for McDonalds. Go to the Web sites in Table 4-6 that calculate McDonalds financial ratios, without your having to pay a subscription (fee) for the service. Make a copy of the ratio information provided and record the source. Report this research to your classmates and your professor.

Assurance of Learning Exercise 4B


Constructing an IFE Matrix for McDonalds Corporation
Purpose This exercise will give you experience in developing an IFE Matrix. Identifying and prioritizing factors to include in an IFE Matrix fosters communication among functional and divisional managers. Preparing an IFE Matrix allows human resource, marketing, production/operations, finance/accounting, R&D, and management information systems managers to articulate their concerns and thoughts regarding the business condition of the firm. This results in an improved collective understanding of the business. Instructions Step 1 Join with two other individuals to form a three-person team. Develop a team IFE Matrix for Step 2 Step 3
McDonalds. Compare your teams IFE Matrix to other teams IFE Matrices. Discuss any major differences. What strategies do you think would allow McDonalds to capitalize on its major strengths? What strategies would allow McDonalds to improve upon its major weaknesses?

Assurance of Learning Exercise 4C


Constructing an IFE Matrix for My University
Purpose This exercise gives you the opportunity to evaluate your universitys major strengths and weaknesses. As will become clearer in the next chapter, an organizations strategies are largely based upon striving to take advantage of strengths and improving upon weaknesses.

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