Reference no: EM133970132
Overview
This exercise will give you experience in developing an IFE Matrix and using Financial Ratios. Identifying and prioritizing factors to include in an IFE Matrix fosters communication among functional and divisional managers. Preparing an IFE Matrix allows managers to articulate their concerns and thoughts regarding the business condition of the firm. This results in an improved collective understanding of the business.
Challenge
Prepare IFE and Financial Ratios for McDonald's. For the Financial Ratios make sure to use the McDonald's revenue statement and balance sheet. There are additional resources found in Table 4-8, find as many McDonald's financial ratios as possible. Record your sources.
o What strategies do you think would allow McDonald's to capitalize on its major strengths?
o What strategies would allow McDonald's to improve on its major weaknesses?
At this website, financial statements seem to be more complete than at other sites. You can also search for companies with the same SIC or NAICS code and then create a comparison financial ratio report. A number of different ratios can be used as comparison criteria to create a tailored report that can then be exported into a Microsoft Excel format. Alternatively, use the Competitors Tab in Mergent to build a list of companies and compare their ratios. Your college library likely subscribes to this service. Get dependable, budget-friendly assignment help-starting today!
At this website, first use the Companies & Markets tab to search for a company. Next, click "Reports" and choose the "Ratio Comparison Report" to get a company's ratios compared to industry averages. Your college library likely subscribes to this service.
This website provides company and industry ratios and information in two sections of the database: (1) the Compustat Excel Analytics section of a particular company's information page and (2) the S&P Industry Surveys.
This is a widely used source for financial ratio information. Search for a particular company and then click on the link for "Ratio Comparisons" on the left side of the company information page. The data in Onesource will compare your company against the industry, against the sector, and against the stock market as a whole.
This is an excellent free resource that allows a user to browse industries by performance rankings, including return on equity, price-earnings ratio, market cap, price change, profit margin, price-to-book value, long-term debt, and more.
Hardcopy Reference Books for Financial Ratios in Most Libraries
Robert Morris Associate's Annual Statement Studies: An excellent source of financial ratio information.
Dun & Bradstreet's Industry Norms & Key Business Ratios: An excellent source of financial ratio information.