(Ratio Analysis) The 2009 Annual Report of McDonald’s Corporation contains the following information.
|
(in billions) |
December 31, 2009 |
December 31, 2008 |
|
Total assets |
$30,225 |
$28,462 |
|
Net sales |
22,745 |
|
|
Net income |
4,551 |
Instructions
Compute the following ratios for McDonald’s for 2009.
(a) Asset turnover ratio.
(b) Rate of return on assets.
(c) Profit margin on sales.
(d) How can the asset turnover ratio be used to compute the rate of return on assets?