team w2 - relies on debt financing.” (Bizwiz consulting)....

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According to, “Asset utilization measures a company’s ability to make best use of its  resources—and by inference, the quality of its management.” Asset utilization is also called  Return on Assets. Based on this ratios, the management of a company can measure how much  money they get return for every one dollar invested.  Then, they can evaluate how well the  assets of the company  have been used to make money.  Compare the asset unilization  in  Mcdonald ,target, Toyota is … I will calculate them tonight The financial leverage ratio or debt to equity ratio is “indicates the extent to which the business 
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Unformatted text preview: relies on debt financing.” (Bizwiz consulting). It is used to indicator the ability of the business meet its long-term debt obligations. The accepted ratio is 2:1, with no more than one-third of debt in long term. Toyota and Target have the financial leverage ratio below 2, meaning that both companies are able to pay off debts. Mcdonald has the ratio is over 5 which indicates that it is the tough year for it. Mcdonald has difficulty to pay debt. Reference
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This note was uploaded on 10/05/2010 for the course ACC ACC561 taught by Professor David during the Spring '10 term at University of Phoenix.

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