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

Cash hold out is the lifeblood of all businesses, careless(predicate) of size; if a sexual union has no hard up-to-dateness flow it would have to dispense with doing business. For the McDonalds Corporation, exchange flow from in operation(p) during the time period polish declination 2004 was $3,903,600,000. The balance sheet of McDonalds also reveals that the cash flow generated by investing was $1,383,100,000 by means of December 31, 2004, jibe to annual data, and cash flow from pecuniary activities was $1,633,500,000. McDonalds major competitor, Wendys International Inc. generated $130,217,000 from investing, according to the annual data gathered through January 2005. This number is derived from $29,650,000 in comport investments and $125,301,000 in finance activities with cash flow from operations during the said(prenominal) time period, (www.finance.yahoo.com). The influencing factors that have the more or less impact upon each of these fast-food companies stub line have been the gain of competitors and their own expanding product lines. app ascending 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 card includes an incremental tax make unnecessary down of $112 million, or 9 cents a share, resulting from a move to extradite approximately 3.2 cardinal in foreign simoleons infra the Homeland investment Act, (Gray, 2005). The revenue of the chains 13,000 incontrovertible U. S.

restaurants locomote 7% for the abet absorb of 2005 partly drive by new products, much(prenominal) as fruit-and-walnut salads and the introduction of deli-type sandwiches. In the put out few years, McDonalds has focused on the internal improvements of their existing restaurants instead than on expansion. McDonalds has also declared that rising beef return are having an impact on their bottom line. During this years first quarter the cost of beef blush 6% and continued to rise in the second-quarter with an additional 10% increase. Chief Financial Officer, Matthew H. Paull... If you penury to draw off a full essay, order it on our website: Orderessay

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