Eat at My Restaurant
The author of this report has been asked to answer two general sets of questions. One pertains to the mechanics of net income versus operating income and other economic factors for a business and much of the rest pertains to the financial data for three different firms. Items that will be discussed will include cash flow ratios, net income, operating income, debt to income ratios and so forth. As noted above, some answers will be general in nature while others will be quite specific. One thing that will be identified as part of this work is which of the three firms might be on thin ice given the financial statistics that are presented in relation to that firm.
First off, the difference between operating income and net income is that the former is revenues minus the cost of getting that work completed, or cost of goods sold. For example, if revenue is $1,000 and the cost of delivering those goods and services is $800, then the operating income is $200. When it comes to net income overall, this is when all expenditures are accounted for including both operating expenses and other expenses that are optional or are not directly related to the revenue obtained for that period. Figures that would be included in net income but not operating income would be research and development, dividend payments to stockholders and so forth. Those items are not necessary to pay for the business completed for that cycle. That being said, items like that have to be paid for by some sort of money, hence the demarcation between operating income and net income overall (Investopedia, 2016).
When it comes to long-term profitability, operating income would absolutely be the more important figure as there needs to be more revenue than operating expenses or the business will not...
Financial Statement AnalysisFinancial statement analysis refers to developing and analyzing a particular company�s financial statements to help with the decision-making processes. It is also essential since it helps external stakeholders such as investors understand its overall condition and evaluate the business value and financial performance. Internally, it is used as a tool to monitor and manage the organization�s finances. A company�s financial statements record essential financial data on all organization�s
Financial Analysis of Mcdonald A financial analysis McDonald's Cor Company Overview McDonald Corporation is a global company that conducts business in 117 countries. McDonald operates 32,737 restaurants and 26,338 franchises in the highly competitive fast food industry. Since 1940, McDonald has built a loyal customer base by continuing dedicating to customer service and providing high quality fast food for customers. Presently, McDonald could boast of over 60 millions customers and the company
According to Brech, these trends do not leave much time -- or money -- available for dining at full-service restaurants. In this study, the respondents "reported their families ate at cafeterias, family or chain restaurants, or fine dining restaurants only once or less each week" (Brech 1998: 21). This is not to say, though, that the number of full-service restaurants in countries such as the United States has declined
In addition many researchers point out that having a consistent vision and strong, defensible unique value proposition are also critical for the continued viability of a restaurant. Relationship marketing and the ability to build and sustain a loyal customer base are just as critical as the ability to manage a restaurant financially. The immediacy and trust that customers develop over time with a restaurant becomes an integral part of its
One of the things that will make a difference for the customers is represented by the quality of the food, which needs to be fresh, first and foremost, and tasty. The good quality of the food also refers to how tasty the dishes are.. From this point-of-view, it is highly important for the restaurant to have a skilled chef. The recipes that the restaurant offers can represent an important opportunity.
It relies on the vision of the state you choose to subscribe and it depends upon the costs and benefits of a few highly imperfect social institutions: market trends and the public sector. (Bovaird, Loffler, 2003, p. 25) The public sector is a ubiquitous social institution having grown in size and complexity within the last fifty years. Nevertheless, this is a linear development. Whereas the development belonging to the
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