Question - Given
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Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions
|
12 Months Ended
|
|
Dec. 31, 2017
|
Dec. 31, 2016
|
Dec. 31, 2015
|
|
REVENUES
|
|
|
|
|
Sales by Company-operated restaurants
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$ 12,718.9
|
$ 15,295
|
$ 16,488.3
|
|
Revenues from franchised restaurants
|
10,101.5
|
9,326.9
|
8,924.7
|
|
Total revenues
|
22,820.4
|
24,621.9
|
25,413
|
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
Food & paper
|
4,033.5
|
4,896.9
|
5,552.2
|
|
Payroll & employee benefits
|
3,528.5
|
4,134.2
|
4,400
|
|
Occupancy & other operating expenses
|
2,847.6
|
3,667.7
|
4,024.7
|
|
Franchised restaurants-occupancy expenses
|
1,790
|
1,718.4
|
1,646.9
|
|
Selling, general & administrative expenses
|
2,231.3
|
2,384.5
|
2,434.3
|
|
Other operating (income) expense, net
|
(1,163.2)
|
75.7
|
209.4
|
|
Total operating costs and expenses
|
13,267.7
|
16,877.4
|
18,267.5
|
|
Operating income
|
9,552.7
|
7,744.5
|
7,145.5
|
|
Interest expense-net of capitalized interest of $5.3, $7.1 and $9.4
|
921.3
|
884.8
|
638.3
|
|
Nonoperating (income) expense, net
|
57.9
|
(6.3)
|
(48.5)
|
|
Income before provision for income taxes
|
8,573.5
|
6,866
|
6,555.7
|
|
Provision for income taxes
|
3,381.2
|
2,179.5
|
2,026.4
|
|
Net income
|
$ 5,192.3
|
$ 4,686.5
|
$ 4,529.3
|
|
Earnings per common share-basic
|
$ 6.43
|
$ 5.49
|
$ 4.82
|
|
Earnings per common share-diluted
|
6.37
|
5.44
|
4.80
|
|
Dividends declared per common share
|
$ 3.83
|
$ 3.61
|
$ 3.44
|
|
Weighted-average shares outstanding-basic
|
807.4
|
854.4
|
939.4
|
|
Weighted-average shares outstanding-diluted
|
815.5
|
861.2
|
944.6
|
Required-
Q1. Interpret the composition of Return from Operating Activities and Nonoperating activities
Q2. What would be the cash conversion cycle?
Q3. What is the difference between Profit margin and Gross margin? Why would they have such a gap if there is any or no gap?
Q4. How did the risk of the company you chose have changed since last year?
Q5. What would be the Z score for the company you chose?