Solution-What factor is mainly responsible for the change

What factor is mainly responsible for the change

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Reference no: EM132905096

Question - Computing and Interpreting Return on Assets and Its Components

McDonald's Corporation (MCD) reported the following balance sheet and income statement data for 2016 through 2018.

$ millions	Total Assets	Net Income	Sales
2018	$32,811.2	$5,924.3	$21,025.2
2017	33,803.7	5,192.3	22,820.4
2016	31,023.9	-	-

Required -

a. What is McDonald's return on assets for 2018 and 2017?

b. Determine the profit margin for 2018 and 2017.

c. Calculate the asset turnover for 2018 and 2017.

d. What factor is mainly responsible for the change in McDonald's ROA over this period? Is it profit margin or asset turnover or both?

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What factor is mainly responsible for the change

Reference no: EM132905096

Reference no: EM132905096

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