Financial Management

After reading this article, I believe that the interests of corporate shareholders and ethics should be closely linked. I understand that the interest of businessmen is to make more money. It is the only way to support an industrial maintenance business continues to operate and develop. However, the starting point for all interests should be built on the basis of morality.

From the social point of view, the shareholder's company is part of society. In order to contribute to the community, the business community should be doing is beneficial to social development.

From the perspective of product purchase, all shareholders profit is from the company's profitability. The company's earnings, it is profitable for public sales. In order to maintain long-term relationship on such an interest to get maximum benefit it should be based on mutual benefit.

From a moral point of view, to maximize the benefits and ethics from certain extent is not in conflict.

Hello everyone,

I would like to choose MacDonald Dettwiler and Associates Ltd (MDDWF) as my simple subject. MacDonald is the world-known fast food restaurant and I really love its food better in China.

For its revenue, from Dec 2005 to Dec 2014, its revenue increases about 1266 Mil dollars. That means, it has been running well all these years.

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For its gross profit, it goes all the way up from $135 Mil in Dec 2005 to $361 Mil in Dec 2014.

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For its earnings per share, we can acquire that it increase about 1 point from 2005 to 2014. Although its total is increasing, compared to 2013, it decreased in one year.

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However, for the net income, except in the year 2011, it was on the peak, and then it seems decrease all the way to 2014. It means that MacDonald’s had some problems about management or expands its market. I know a fact is that MacDonald’s has expanded breakfast meal in recent years. However, the effect was not so good, because Starbucks has occupied a large market. Another competitor is Wendy’s, it opens up late and its meals seem healthier than MacDonald’s.

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Finally, I find a very interesting thing, which is the market in China is going very well. China has a large population and market. If MacDonald’s expand more market in China, it may profit more.

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From the chart we can analysis that:

-Seven Year Revenue Growth Rate: 3.47%

-Seven Year EPS Growth Rate: 7.19%

-Seven Year Dividend Growth Rate: 18.49%

-Current Dividend Yield: 3.52%

-Balance Sheet Strength: Strong

Ratios

Price to Earnings: 20.02

Price to Free Cash Flow: 22.42

Price to Book: 7.23