Ratio Analysis and Statement of Cash Flow: Wendy's vs. McDonald's.

Cash guide is the lifeblood of all businesses, regardless of size; if a conjunction has no hard currency flow it would sire to cease doing business. For the McDonalds Corporation, exchange flow from operating during the time conclusion ending declination 2004 was $3,903,600,000. The balance sheet of McDonalds also reveals that the property flow generated by investing was $1,383,100,000 through December 31, 2004, correspond to annual data, and cash flow from financial activities was $1,633,500,000. McDonalds major competitor, Wendys internationalist Inc. generated $130,217,000 from investing, according to the annual data collected through January 2005. This count is derived from $29,650,000 in comport investments and $125,301,000 in financing activities with cash flow from operations during the said(prenominal) time period, (www.finance.yahoo.com). The influencing factors that have the most impact upon apiece of these fast-food companies fundament line have been the growth of competitors and their own expanding overlap lines. sack income for McDonalds fell to $530.4 million, or 42 cents a shargon, from $590.7 million, or 47 cents a share. The latest report includes an incremental assess write down of $112 million, or 9 cents a share, resulting from a move to extradite approximately 3.2 billion in remote earnings infra the Homeland Investment Act, (Gray, 2005). The revenue of the bonds 13,000 plus U. S.

restaurants locomote 7% for the second quarter of 2005 partly driven by new products, such as fruit-and-walnut salads and the ingress of deli-type sandwiches. In the last few years, McDonalds has focused on the knowledgeable improvements of their existing restaurants rather than o! n expansion. McDonalds has also stated that procession beef damages are having an impact on their fucking line. During this years first quarter the cost of beef rose 6% and continued to rise in the second-quarter with an additional 10% increase. primary(prenominal) Financial Officer, Matthew H. Paull... If you want to draw off a wide of the mark essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.