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

Cash hunt is the lifeblood of all businesses, regardless of size; if a conjunction has no hard currency flow it would stir to cease doing business. For the McDonalds Corporation, exchange flow from operating during the time spacious point ending declination 2004 was $3,903,600,000. The balance sheet of McDonalds also reveals that the change flow generated by investing was $1,383,100,000 through December 31, 2004, accord to annual data, and cash flow from financial activities was $1,633,500,000. McDonalds major competitor, Wendys internationalistic Inc. generated $130,217,000 from investing, according to the annual data collected through January 2005. This subprogram 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 for each one of these fast-food companies fundament line ha ve been the growth of competitors and their own expanding crop 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 tax write down of $112 million, or 9 cents a share, resulting from a move to extradite approximately 3.2 billion in impertinent 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 partially driven by new products, such as fruit-and-walnut salads and the macrocosm of deli-type sa ndwiches. In the last few years, McDonalds h! as focused on the interior(a) improvements of their existing restaurants rather than on expansion. McDonalds has also stated that emergent beef damages are having an impact on their foundation 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. brain Financial Officer, Matthew H. Paull... If you want to draw off a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper