The gross profit ratio (also called the gross margin) measures profitability. It is calculated by dividing the gross profit by the net sales revenue. It shows financial health by the amount left over after deducting Cost of Goods Sold. A higher gross profit percentage means more income from each dollar made. The gross income percentage margin (LTM) for Wendys, Burger King, and Mcdonalds are as follows; 21, 79.9, and 38.7.
Inventory turnover measures the number of times a company sells its average merchandise inventory during a period. The inventory turnover (FY) for Wendy is 168.3, Burger king is 73.7, and Mcdonald is 140.2. …show more content…
The current ratios (FY) for Wendys is 2.6, Burger King is 3.1, and Mcdonalds is 1.6. A higher current ratio means that a company is more likely to be able to pay its obligations at the “current” point in time (current meaning the timeframe the ratio is calculating). A current ratio under 1 means the company will not be able to pay its obligations at the point in time. Out of the three companies, Burger king has the highest current ratio, which means it has currently (the time the ratio measures) enough to pay off its