Financial Analysis of McDonald’s Company

Abstract

Financial analysis is a process of selecting, evaluation and interpreting financial data. It is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions. The ability to understand financial data is essential for any business manager. Finance is the language of business. Business goals and objectives are set in financial terms and their outcomes are measured in financial terms. Among the skills required to understand and manage a business is fluency in the language of finance—the ability to read and understand financial data as well as present information in the form of financial reports. The objective of this thesis is to analyze the financial situation of McDonald's between 2012 and 2016. McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, originating in Southern California. And it is also the world's largest fast food chain, serving over 69 million customers daily in over 100 countries across approximately 36,900 outlets as of 2016. Thesis is divided into five parts. The first chapter is introduction. The second chapter is description of the financial analysis methodology. The third chapter is financial characterization of McDonald's. The fourth chapter is financial analysis of financial characterization of McDonald's. And the last chapter is summarization.

Financial analysis is a process of selecting, evaluation and interpreting financial data. It is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions. The ability to understand financial data is essential for any business manager. Finance is the language of business. Business goals and objectives are set in financial terms and their outcomes are measured in financial terms. Among the skills required to understand and manage a business is fluency in the language of finance—the ability to read and understand financial data as well as present information in the form of financial reports.