Assignment:
McDonald (In millions of USD)
2008 2007 2006
Net sales $23,522.40 $ 22,786.60 $20,895.20
Acct Recv 931.20 1,053.80 806.90
2008
23522.40/(1053.80+931.20)/2 = 23522.4/1985 =23.70 times or 15 days
2007
22786.6/(1053.80+806.9)/2= 22786.6/930.35=24.50 times or 15 days"
now to compare it to Burger King (BKC)
2008 2007 2006
Net sales $2,455.00 $2,234.00 $2,048.00 (in millions)
AR $139.00 $125.00 $110.00
2008
$2,455.00/ ((139 +125) / 2)= 18.60 times or 19.6 days
2007
2,234.00/ ((125 +109) / 2)= 19.09 times or19.1 days
Overall Burger King's AR's turn over is not far behind McDonalds, one thing one has to consider although, is the amount of sales of McDs in comparison to BK. By net sales alone it seems that McDs sales almost ten times more than BK, and still manages to get a better turn around.
Way to go McDs!
What your opinion? why you think it's good choice to compare that types of company's between each other?