The following information was reported by McDonald’s Corporation in its 2001 annual report.
|
(In millions) |
2001 |
2000 |
1999 |
|
Cash flow from operating activities |
$2,688 |
$2,752 |
$3,009 |
|
Total assets |
22,535 |
21,684 |
20,983 |
Evaluate McDonald’s Corporation’s investing decisions by computing the ratio of cash flow from operating activities to total assets for 1999 through 2001. Compare the cash flow ratio with return on assets from E12 9. What do you conclude, given this information?