Burger King analysis
Ratio analysis gives potential investors insight on how well the company is doing.
Liquidity Ratios measure the company's ability to pay off short term debts.
Based on the company's current ratio, it has been increasing over the years and it is obvious the company is able to pay off its obligations being that the ratio is above 1.
The company's quick ratios has increased over the years and being that it is greater than 1, the company has the ability to use quick assets to payoff current liabilities.
The company's current cash debt coverage ratios has fluctuated over the years. Being that the ratios are below 1, it shows that the company will not be able to pay off current liabilities with cash provided by operating activities.
Activity Ratios measures how affective the company uses its assets.
Though the receivable turnover ratios have been decreasing over time, the high ratios indicate the company has a low amount of uncollected dollars from operations.
The high inventory turnover ratios indicate that the company has great sales thus having low inventories.
The decrease and low ratios of the asset turnover ratios implies that there are less sale the company is producing based on its assets.
Profitability Ratios measures a company's ability to generate earnings as compare to its expenses, revenues, and sales for a given period of time.
The low profit margin ratios indicates that the company keeps low amounts of each dollars sale in earnings. This shows that the company has less control over its costs.
Based on the low rate of return on assets ratios, it's obvious that the company earns less dollars being that there are less investments
The low return on equity ratios indicate that the company doesn't earn as much profit on owners investments.
Based on the company's low earnings per share, the company earns low amounts of net income on each share of common stock.
The high price/earnings ratio provided indicates
Liquidity Ratios measure the company's ability to pay off short term debts.
Based on the company's current ratio, it has been increasing over the years and it is obvious the company is able to pay off its obligations being that the ratio is above 1.
The company's quick ratios has increased over the years and being that it is greater than 1, the company has the ability to use quick assets to payoff current liabilities.
The company's current cash debt coverage ratios has fluctuated over the years. Being that the ratios are below 1, it shows that the company will not be able to pay off current liabilities with cash provided by operating activities.
Activity Ratios measures how affective the company uses its assets.
Though the receivable turnover ratios have been decreasing over time, the high ratios indicate the company has a low amount of uncollected dollars from operations.
The high inventory turnover ratios indicate that the company has great sales thus having low inventories.
The decrease and low ratios of the asset turnover ratios implies that there are less sale the company is producing based on its assets.
Profitability Ratios measures a company's ability to generate earnings as compare to its expenses, revenues, and sales for a given period of time.
The low profit margin ratios indicates that the company keeps low amounts of each dollars sale in earnings. This shows that the company has less control over its costs.
Based on the low rate of return on assets ratios, it's obvious that the company earns less dollars being that there are less investments
The low return on equity ratios indicate that the company doesn't earn as much profit on owners investments.
Based on the company's low earnings per share, the company earns low amounts of net income on each share of common stock.
The high price/earnings ratio provided indicates