Required: b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.)
McDonald’s conducts operations worldwide and is managed in three primary geographic segments: U.S., International Lead Markets (including Australia, Canada, France, Germany, and the UK), and High Growth Markets (including China, Italy, Korea, Poland, Russia, Spain, Switzerland, and the Netherlands). A hybrid geographic/corporate segment, Foundational Markets & Corporate, reports on the results of all other countries as well as any unallocated amounts. McDonald’s allocates resources to, and evaluates the performance of, its segments based on operating income. The asset totals disclosed by geography are directly managed by those regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Corporate assets primarily include cash and cash equivalents, investments,
![High
Foundational
International
Growth
Markets &
Total
U.S.
Lead Markets
Markets
$ 8,006.4
8,252.7
8,558.9
$ 4,022.4
3,768.7
3,612.0
Corporate
$1,940.5
2,985.1
3,066.4
$
Company
$22,820.4
24,621.9
25,413.0
$ 9,552.7
$ 7,340.3
7,223.4
$5,533.2
6,160.7
Revenues
2017
2016
7,614.9
$ 3,166.5
2,838.4
2,712.6
$
6,172.8
$2,001.4
1,048.8
2015
Operating income
2017
362.4
7,744.5
7,145.5
$ 1,363.4
1,516.5
1,555.7
$33,803.7
31,023.9
37,938.7
2016
88.6
2015
841.1
(20.2)
$
192.6
Depreciation and amortization expense
2017
524.1
461.1
$
231.7
146.5
2016
510.3
451.6
362.0
2015
515.2
460.9
363.9
215.7
$12,648.6
11,960.6
11,806.1
$11,844.3
9,112.5
11,136.3
$4,830.1
4,742.1
9,747.7
Assets
2017
$4,480.7
2016
5,208.6
5,248.6
2015
Required:
b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017.
(Do not round intermediate calculations. Round your percentage answers to 1 decimal place.)
ROI(%)
U.S.
%
International Lead Markets
%
High Growth Markets
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffea94a50-e8e7-419f-bb62-28be718638fb%2Fd42c0cad-674b-4b6d-90d0-c50dd149d8dd%2Fyyx2dbi_processed.png&w=3840&q=75)
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