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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 Johns pizza. In the case of McDonalds 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 Johns depends more on loans to keep the company going that gross profit....
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This note was uploaded on 04/09/2008 for the course ENGL 324 taught by Professor Butz during the Spring '08 term at Eastern Michigan University.
- Spring '08