Financial statement analysis and common stock valuation

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by McDonald’s Corp..

Analysis of Solvency Ratios
Quarterly Data

Examines McDonald’s Corp. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Debt to Assets
• Financial Leverage
• Interest Coverage

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of McDonald’s Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by McDonald’s Corp..

Cash Flow Statement

The cash flow statement provides information about McDonald’s Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on McDonald’s Corp. balance sheet.

Analysis of Profitability Ratios

Measures the income of McDonald’s Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about McDonald’s Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on McDonald’s Corp. balance sheet.

Aggregate Accruals

Financial reporting quality relates to the accuracy with which McDonald’s Corp. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of McDonald’s Corp. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of McDonald’s Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently McDonald’s Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover