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Fnancial analysis. Accenture, Wal-Mart, and McDonald’s. - Essay Example
Author : cydneytromp
Finance & Accounting
Pages 3 (753 words)
Wal-Mart is the largest retailer and top employer in the world. The company has beat out the competition implementing a low cost model which helped the firm offer lower prices. …
McDonald’s is the largest fast food restaurant in the world. The company has over 32,000 stores worldwide. The global sales of McDonald’s in 2011 were $27 billion. The use of aggressive advertising strategies has helped McDonald’s gain popularity, increase its customer base, and achieve superior customer retention.
The annual reports of Accenture, Wal-Mart, and McDonald’s were downloaded for review. Each annual report provided information regarding the financial statements of the companies.
All three companies demonstrated having strong cash reserves. The firm with the largest cash account was Wal-Mart with $7.40 billion. Accenture ranked second between the three companies at $5.7 billion, while McDonald’s had the weakest cash position at $2.34 billion. The current ratio was chosen as the metric to measure the company’s ability to pay off its short term debt using current assets. All three companies are in good position to pay off their current debt due to the fact that all three companies had a current ratio above the 1.0 threshold.
Wal-Mart utilized the most cash on investing activities out of the three firms at $12.19 billion. The firm that had the lowest amount of cash spend in investing activities was Accenture with $0.7 billion. The amount of cash spend in investing activities by McDonald’s was $2.57 billion. The firm with the highest change in non-current assets during fiscal year 2011 was Wal-Mart with $5.55 billion. ...