Che The following information is provided for Starbucks (SBUX) and McDonalds (MC

Question

Che The following information is provided for Starbucks (SBUX) and McDonalds (MCD) for the fiscal year (2017) amounts are in millions of USD SBUX MCD Net Sales Cost of Goods Sold Operating Expenses 22,386.6024,621.90 9,038.2011,698.80 5,178.60 9,605.30 Cash&Cash; Equivalents Short-term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets 2,671.20 2.462.30 228.60 870.40 1569.00 1.364.00 54.20 495.90 5,283.404.790.30 358.10 Average Plant Assets Average Total Assets 4,726.65 2218760 14.339.0531.791.75 Total Current Liabilities Total Liabilities 4.220.70 3 8,908.60 3,468.30 33,228.20

Explanation / Answer

a. Starbucks (SUBX) is more effective in generating return on its sales.

b. on an average SBUX is having higher margin on its products than MCD

c. Starbucks (SUBX) is more effective in generating sales using its plant assets.

d. Starbucks (SUBX) is more effective in generating sales using its total assets.

As per the Chegg's policy I have provided answer off first 4 questions

Profitability Gross Margin    13,348.40    12,923.10 =Net Sales-Cost of Goods Sold Operating Margin      3,743.10      7,744.50 =Gross Margin-Operating expenses Return on Assets 26% 24% =Operating margin/Average total Assets Liquidity Current Ratio              1.25              1.38 =Total Current Assets/Total Current Liabilities Acid-Test Ratio              0.84              1.22 =(Cash& cash Equivalents+Short term Investments+Accounts receivable)/Current Liabilities Efficiency Day's sales uncollected            61.33            67.46 Day's Inventory Outtsnading              3.74              0.15 Total Assets Turnover              1.56              0.77 =Net Sales/Averegare Total Assets Plant Assets Turnover              4.74              1.11 =Net Sales/Averegare Plant Assets

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