Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for McDonald's Corporation and Yum! Brands, Inc., follows (in millions). Sales Revenue Interest Expense Net Income Average Total Assets $27,441 $571 $4,758 $35,454 13,279 130 1,021 8,520 McDonalds Yum! Brands a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer. Round answer to one decimal place (i.e., 0.2568 = 25.7%). McDonalds Yum! Brands McDonalds Yum! Brands b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Do not round until your final answers. Round PM and ROA to one decimal place (i.e., 0.2568 = 25.7%). Round AT to 3 decimal places. PM X 0% 0% 0% 0% AT 0 0 ROA 0% 0%
Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement information for McDonald's Corporation and Yum! Brands, Inc., follows (in millions). Sales Revenue Interest Expense Net Income Average Total Assets $27,441 $571 $4,758 $35,454 13,279 130 1,021 8,520 McDonalds Yum! Brands a. Compute the return on assets (ROA) for each company. Assume a tax rate of 35%. Do not round until your final answer. Round answer to one decimal place (i.e., 0.2568 = 25.7%). McDonalds Yum! Brands McDonalds Yum! Brands b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. Do not round until your final answers. Round PM and ROA to one decimal place (i.e., 0.2568 = 25.7%). Round AT to 3 decimal places. PM X 0% 0% 0% 0% AT 0 0 ROA 0% 0%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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