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.)
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.)
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, deferred tax assets, and other assets. Refer to the following geographic segment data (in millions) from the 2017 annual report of McDonald’s Corp.:
Transcribed Image Text:## Financial Data Analysis
This document presents financial data for a company across different years and market segments. The data is organized into several categories, including revenues, operating income, depreciation and amortization expense, and assets. Each category is broken down by geographic segments: U.S., International Lead Markets, High Growth Markets, and Foundational Markets & Corporate.
### Table Summary
#### Revenues
- **2017**:
- U.S.: $8,006.4 million
- International Lead Markets: $7,340.3 million
- High Growth Markets: $5,533.2 million
- Foundational Markets & Corporate: $1,940.5 million
- Total Company: $22,820.4 million
- **2016**:
- Total Company decreased to $24,621.9 million
- **2015**:
- Total Company was $25,413.0 million
#### Operating Income
- **2017**:
- U.S.: $4,022.4 million
- International Lead Markets: $3,166.5 million
- High Growth Markets: $2,001.4 million
- Foundational Markets & Corporate: $362.4 million
- Total Company: $9,552.7 million
- Operating income records a slight increase over 2016.
#### Depreciation and Amortization Expense
- Total Company expense has gradually decreased from 2015 to 2017, with 2017 at $1,363.4 million.
#### Assets
- **2017**:
- U.S.: $12,648.6 million
- International Lead Markets: $11,844.3 million
- High Growth Markets: $4,480.7 million
- Foundational Markets & Corporate: $4,830.1 million
- Total Company: $33,803.7 million
### Calculation Requirement
Required to calculate the Return on Investment (ROI) using the DuPont model for 2017. The table is to be filled in with percentages for each primary geographic segment:
- **U.S.**
- **International Lead Markets**
- **High Growth Markets**
The percentages should be rounded to one decimal place. The document notes not to round intermediate calculations to maintain accuracy.
This analysis aids in understanding the financial health and performance of different market segments and
Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.
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