You must have Credits on your Balance to download this sample
Case Acct: Introduction to Executive Tools for Decision Making
Finance & Accounting
Pages 3 (753 words)
Section one The three companies chosen for financial analysis are Accenture, Wal-Mart, and McDonald’s. “Accenture is a global management consulting, technology services and outsourcing company, with 257,000 people serving clients in more than 120 countries” (Accenture, 2012).
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. Section two 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. The four financial statements are the income statement, balance sheet, statement of retained earnings, and cash flow statement. Section three Cash (2011) Current ratio (2011) McDonald’s $2.34 billion 1.25 Accenture $5.7 billion 1.41 Wal-Mart $7.40 billion 2.79 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 has the best current ratio at 2.79, while McDonald’s had the weakest current ratio at 1.25. The current ratio of Accenture was 1.41. ...
Not exactly what you need?