Performing a Financial Ratio Analysisfor McDonald's Corporation (MCD)

Financial ratio analysis is one of the best techniques for identifying and evaluating internalstrengths and weaknesses. Potential investors and current shareholders look closely at firms'financial ratios, making detailed comparisons to industry averages and to previous periods of time. Financial ratio analyses provide vital input information for developing an IFE Matrix.

Step 1: On a separate sheet of paper, number from 1 to 20. Referring to McDonald's income statementand balance sheet.

Step 2: In a second column, indicate whether you consider each ratio to be a strength, a weakness, or aneutral factor for McDonald's.