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McDonalds Long term loans?
Hello. I need some help on a section I'm writing about for McDonalds. Could you tell me if this makes sense for McDonalds today? Thanks
McDonald’s debt to equity ratio shows that they have a large account of liabilities and debt, when compared to stockholder’s equity. This is not a good sign, especially if McDonalds plans to pay dividends and give back to shareholders in the near future. The current debt ratio for McDonalds shows that current liabilities are higher than current assets. This is also a bad sign because it shows that the company is not able to cover all of its immediate debts and loans. If creditors were to call in all debts, the company would find it very difficult to pay. As such, McDonald’s has little liquidity. Another reason why McDonalds have large account of liabilities and debt is because nearly 100 percent of profits from company owned stores are re-invested into new enterprises.
1 Answer
- Glenn SLv 71 decade agoFavorite Answer
And your question is?
And why are you asking this in the Real Estate section?
Plus you obviously don't have a clue.
McDonalds assets are more than $30,000,000,000 and their liabilities are about $16,000,000,000. With a yealy profit of about $8,500,000,000 or about 21%.
And their P/E is about 16.