Mcdonalds Financal for 5 year. Tell me something about the picture. 2014 Fiscal
ID: 336629 • Letter: M
Question
Mcdonalds Financal for 5 year. Tell me something about the picture.
2014 Fiscal year is January-December. All values USD millions + Sales/Revenue +Cost of Goods Sold (COGS) incl. D&A; 2013 2015 2016 2017 5-year trend 28.11B 17.2B 15.62B 1.59B 1.5B 86.3M 10.9B 27.44B 16.99B 15.34B 1.64B 1.54B 105.2M 10.46B 25.41B 15.62B 14.07B 1.56B 1.44B 117.7M 9.79B 24.62B 14.42B 12.9B 1.52B 22.82B 12.2B COGS excluding D&A; 10.84B Depreciation & Amortization Expense 1.36BI Depreciation 1.39B Amortization of Intangibles 125.8M 135.9M +Gross Income 10.2B 10.62BExplanation / Answer
Let us first look at the relation of sales and profit.
From 2013 to 2017 sales is constantly declining however profits does not follow the same pattern. Profits have a rollercoaster ride in this 5 years span with and at the end of 2017 it is marginally low then the levels of 2013, however, sales have seen a sharp decline of 18% in these 5 years. Which means the company is earning profits from somewhere else and not from the revenue generated from sales.
COGS and sales.
Although sales have seen a decline of about 18% in last 5 years, Cost of producing also seen a very steep downturn of about 29% in last 5 years, which means the company is able to cut down on the cost and hence increase the profit margin.