Company Analysis

Tem&Fai 10-5
Introduction
This project is held up because after we have
studied about ratio analysis, we want to use
this knowledge in real field. This can help us to
figure which company is good or bad. It is also
part of decision about investing in the
company too.
Plan
1.search for the 6 company balance sheet &
profit and lost
2.calculate the ratio
3.analyze the information from the ratio
4.draw the graph that compare from each
year
5.present
Company name
Company name
We choose all six company because they are
all fast food restaurants which have franchise
all over the world. We want to know which
fast food company have the most profit and
successful in their business.
Ratio analysis from 2011-2012
To sought out from the differences in 2011-2012
by using many types of ratio
McDonald 2012 2011
Gross profit ratio
GP/Sales x 100
77.08% 77.16
Net Profit Ratio
NP/sales x 100
19.82% 20.38%
R.O.C.E
NP/Total Equity x 100
35.78% 38.24%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
62.82% 63.09%
Current ratio
Current Asset/ Current
Liabilities
1.45 1.25
Acid test ratio
Current Asset - Stocks/
Current Liabilities
1.41 1.22
Asset Turnover ratio
Revenue/ Assets
0.77 0.81
Inventory Turnover
Sales/Inventory
4.36 4.38

Wimpy 2012 2011
Gross profit ratio
GP/Sales x 100
46.06% 43.3%
Net Profit Ratio
NP/sales x 100
12.8% 12.02%
R.O.C.E
NP/Total Equity x 100
32.89% 31.87%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
11.26% 19.91%
Current ratio
Current Asset/ Current
Liabilities
1.32 1.36
Acid test ratio
Current Asset - Stocks/
Current Liabilities
0.88 1.07
Asset Turnover ratio
Revenue/ Assets
1.77 1.64
Inventory Turnover
Sales/Inventory
17.97 24.86

Burger King 2012 2011
Gross profit ratio
GP/Sales x 100
80.56% 77.53%
Net Profit Ratio
NP/sales x 100
6% 3.77%
R.O.C.E
NP/Total Equity x 100
10% 8.39%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
56.23% 38.61%
Current ratio
Current Asset/ Current
Liabilities
2.24 1.53
Acid test ratio
Current Asset - Stocks/
Current Liabilities
It doesnt show stocks in
Balance sheet
It doesnt show stocks in
Balance sheet

Asset Turnover ratio
Revenue/ Assets
0.35 0.42
Inventory Turnover
Sales/Inventory
It doesnt show stocks in
Balance sheet

It doesnt show stocks in
Balance sheet


Yum 2012 2011
Gross profit ratio
GP/Sales x 100
71.38% 57.5%
Net Profit Ratio
NP/sales x 100
11.71% 10.45%
R.O.C.E
NP/Total Equity x 100
70.38% 68.84%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
46.95% 42.97%
Current ratio
Current Asset/ Current
Liabilities
0.87 0.94
Acid test ratio
Current Asset - Stocks/
Current Liabilities
0.72 0.83
Asset Turnover ratio
Revenue/ Assets
1.51 1.42
Inventory Turnover
Sales/Inventory
43.54 46.24

Starbucks 2012 2011
Gross profit ratio
GP/Sales x 100
56.3% 58%
Net Profit Ratio
NP/sales x 100
15.48% 15.47%
R.O.C.E
NP/Total Equity x 100
40.26% 41.28%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
51.66% 56.26%
Current ratio
Current Asset/ Current
Liabilities
1.9 1.83
Acid test ratio
Current Asset - Stocks/
Current Liabilities
1.34 1.36
Asset Turnover ratio
Revenue/ Assets
1.619 1.59
Inventory Turnover
Sales/Inventory
10.712 12.114

Dunkin Donut 2012 2011
Gross profit ratio
GP/Sales x 100
89.51% 88.49%
Net Profit Ratio
NP/sales x 100
16.35% 5.48%
R.O.C.E
NP/Total Equity x 100
31.05% 4.62%
Gearing Ratio
Long term Liabilities/
Capital Employ x 100
87.78% 74.34%
Current ratio
Current Asset/ Current
Liabilities
1.28 1.284
Acid test ratio
Current Asset - Stocks/
Current Liabilities
1.18 1.19
Asset Turnover ratio
Revenue/ Assets
Inventory Turnover
Sales/Inventory
company 2011-2012 Ratio analysis Comment
McDonald No dramatically change
It goes down from about 1-
2% in every ratio
It shows that financial
status of McDonald still
remain positive with huge
amount of profit. It
Wimpy No big changes. It goes up
a little except in gearing
from 19%-11%
It means that the company

company 2011-2012 Ratio analysis Comment
6 company comparison
To sought out which company got the best
financial status and suitable for invest
Method
We will look over these ratio
Net profit Ratio because it show the amount of
profits. If more profits are earned, the more
successful investing will appear.
R.O.C.E because it can determine whether money
that we have invest is going give us worth returns
Current Ratio because sometimes, the company
will use the profit to buy more assets. This mean
that can also show the value of company.
Net Profit Ratio
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
McDonald Burger King Wimpy Yum Dunkin Donut Starbucks
Net profit ratio
Net profit ratio
R.O.C.E.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
McDonald Burger King Wimpy Yum Dunkin Donut Starbucks
R.O.C.E
R.O.C.E
Current Ratio
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
McDonald Burger King Wimpy Yum Dunkin Donut Starbucks
Current ratio
Current ratio
Conclusion
Sought out for the company that we are
going to invest
Starbucks
Conclusion
We choose to Starbucks. After 6 company
comparison , we notice that Starbucks and
McDonald are the most interesting because
net profit is the first and second. Even though
,in the other two ratio, they arent the highest,
but the company that got the highest got low
in the other ratio.
Conclusion
McDonald and Starbucks have little different.
Starbucks got more on R.O.C.E and current
ratio. It shows that the company has worth
returns and has currents more than
McDonald. Even though McDonald has more
profits but in our opinion, in long term,
R.O.C.E can determine whether the company
is going to good more than profit.
Sites
http://www.famousbrands.co.za/downloads/ann
ual_report/annual_report_2012.pdf
http://files.shareholder.com/downloads/ABEA-
68SCR9/2556218952x0x650114/408603D0-6E62-
422F-AB40-
3A7C89686005/DNKN_2012_Annual_Report_Fin
al_.pdf
http://www.awincomefund.ca/pdfs/AR2012.pdf
http://www.investopedia.com