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computerproject3word - This does not reflect directly in...

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Josh Lewis E00615704 Acc 240 Mon-Wens 2:30-3:45pm Prepared for: Dr. Lewis Based on the Net profit margins from 2003 compared to the numbers that I received from the current ratings; you can see a slight decline in the net profit for Papa John’s and Domino’s but Yum! Brands have increased. This tells me that either the demand for pizza is less than before or that due to advertisements and competitors profit has been on a decline for this period, Yum on the other hand has seen a nice increase of profit leading me to believe that management has done a good job. With a high ratio this would suggest that the companies rely a lot on the funds provided by creditors in forms of loans, which would lead me to believe that the company has fallen on some hard times and depends on those loans to keep the business going. According to the book this would suggest in the opinion of an analysts that this tells the amount of cash the company can generate from operating activities.
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Unformatted text preview: This does not reflect directly in the case of the companies that we look at in the spread sheets for example, the Yum corporation has a high dept ratio but has a higher profit margin when compared to Papa John’s pizza. In the case of McDonald’s it makes a lot of since, they have a very low dept ratio and a high profit margin compared to the three other companies mentioned; leading me to believe that they are doing very well for themselves. In the case of the Callaway Golf Company, the current ratio is found by this equation, 383.462/130.160=2.9461. In comparison to the other four companies Callaway Golf Company has a higher ratio which tells me that they have a higher total asset compared to there total liabilities. In terms of being the least liquid based company would lead me to believe that Papa John’s depends more on loans to keep the company going that gross profit....
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  • Spring '08
  • Butz
  • Profit margin, Generally Accepted Accounting Principles, Papa John, Papa John's Pizza, Callaway Golf Company, net profit margins

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