Case Study On Financials

Choose a publicly held company and, using the Internet, review its most current annual report. Evaluate
the health of the corporation you picked based upon your analysis of its financial statements: balance
sheets, income statements, cash flow statements, and statements of shareholders’ equity. Then, research
a similar sized competitor for comparison.
Conduct a vertical, horizontal, and ratio analysis on four financial statements.
Compare the ratio, which includes liquidity, profitability, and solvency, with the industry benchmark and
one other comparable competitor.
Synthesize the results of the three financial analysis tests to determine the overall health of the
organization.
Present an accurate interpretation of the company’s current financial health, including risks. Support
your conclusions.
Recommend three ways to improve the company’s financial health, including one example for each that
has been used in the industry.

Case Study On Financials

The financial success worldwide for McDonald and Wendys is compared and contrasted in this report. The balance sheet as well as the cash flow statement and the statement of equity of shareholders were used to calculate the different ratios of financials. McDonalds as well as Wendys are among the most well-known and well-known fast-food eateries.

Horizontal Analysis

Since the year 2016, McDonald’s liabilities have outpaced its assets, which is a indication of financial problems which could hinder the expansion plans of the company. The assets at the time of 2021 stood at $7,148.5 million, higher than the liabilities currently at $4,020 million. Positive working capital means that the company’s assets are greater than its obligations. If a business has sufficient funds to work, they will be able to pay off short-term debts when they mature over the next twelve months. At the time of 2016, they hit $24,621,900 the sales at McDonalds decreased at McDonalds. The 2021’s sales of $23,222900 represented an enormous increase over the year prior. The cash reserves of the company declined by $2.46 billion last year to $0.89 billion in 2019. (Benlamalih and Nobanee, 2020). The trend of increasing was evident through the years, and in 2021, the cash reserves were at $4.7b. There was a trend of increasing in receivables until the year 2019 in which there was an 0.9 percent decrease from the year before, and has been declining from then on.