Most current financial data and ratios for two firms in a single Research Paper

Most current financial data and ratios for two firms in a single industry, from the US - Research Paper object lessonFinancial analysis between McDonalds and Yum Brands Incl. to de calline their competitiveness since the figures in financial averments never lies. Analysis will be done on the cash f diminished, income statement and balance statementThese ratios include current ratio, quick ratio and cash ratio. This ratio shows the extent at which the company is able to repay its goldbrick term liabilities using current liabilities. According to (Ross & Westerfield, 2000) a value of 1 or greater shows the firm is more liquid hence able to repay its short term obligations with ease.From the above analysis we can see that McDonalds has higher liquidity ratio than Yum Brands Incl. thus it has $ 1.59 to pay $ 1 debt while Yum Brands Incl. only has $0.75 to settle $1 thus having a deficit of $ 0.25.From the above analysis still McDonalds has higher quick ratio as compared to Yum Brands Incl. which has 0.39. This proofs that McDonalds is able to pay off its debt with ease as compared to Yum Brands Incl.This analysis measures the level of profit making a company is as compared to other competitors (Rowland, 1936). These ratios are one of those that attract investors to invest in a abandoned firm. Some of the ratios are as followsFrom the above analysis McDonalds is able to $ 0.22 for every $ 1 invested in the company as opposed to Yum Brands Incl. which only gains $ 0.18. This shows that McDonalds receives great decease from usage of its assets.This ratio shows the proportion of the companys equity financed by owners equity and debt. This ratio is supposed to be as low as possible because high level reflects the company is at a state of insolvency (Kieso & Weygandt, 2001).From the above analysis both firms its assets are financed more by debt by owners equity. For McDonalds its assets are financed 1.28 times than by owners equity as for Yum Brand Incl. it is terri ble since it is asset is financed more than