Financial analysis Apple and McDonald's Essay Example | Topics and Well Written Essays - 500 words

Financial analysis Apple and McDonald's - Essay Example On the other hand, Apple Inc. experienced a drop in their bottom line from forty-one billion and seven million United States dollars down to thirty-seven billion. The experience was in spite of the fact that the company realized an increase in revenues to one hundred and seventy-one billion from slightly more than one hundred and fifty-six billion. A major in put in the falling bottom line in spite of the increasing revenue was the increase in revenue collected by the company in the percentage of sales associated with cost of goods to more than sixty-two percent from fifty-three. The income statement also referred to as the statement of earnings covers the entire performance of McDonald’s Corp. That includes results of operating activities. Similarly, the statement of financial position reports important classes as well as amounts of resources controlled and owned by the company. The ratios explore the output and revenues generated by both Apple Inc. and McDonald’s Corp’s assets. Included in the evaluation is the level of operations versus the assets required to maintain operating activities. Evaluation takes place under the general terminology of operating performance ratios. The debt-to-equity ratio for McDonald’s reduced in twenty eleven to two thousand and twelve but recorded slight improvements from two thousand and twelve to two thousand and thirteen. The debt-to-capital ratio faced the same fate as it deteriorated in two thousand and eleven through to two thousand and twelve. The trend in the subsequent financial year was similar to that in the debt-to-equity ratio. When calculating the interest coverage ratio as an EBIT and dividing it interest payments, it leads to the conclusion that MacDonald’s Corp. Reducing in the preceding financial year with slight improvements in the subsequent year. The adjusted total assets for M cDonald’s followed the same trend