x
Cookies help us deliver our Services. By using our Services or clicking I agree, you agree to use of cookies. Learn more.
I agree

Quality Of Earnings And Accounting Issu

University/College: University of Arkansas System
Date: October 31, 2017
Words: 161
WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $24.38 $20.00/PAGE
I want a sample

Quality Of Earnings And Accounting Issu

Quality of Earnings and Accounting Issues: After analyzing McDonald’s financial statements and its accounting practices, we feel that McDonald’s has high quality of earnings and it Is unlikely to have any negative accounting issues. 1 . Cash Flow Adequacy: McDonald’s has positive cash from operations. 2. McDonald’s total accruals and total assets ratio Is consistently below zero Indicating that there are cash receipts backing up earnings. 3. Quality of Earnings:

A positive DATA ratio Is often problematic, especially If the firm has negative earnings. A DATA ratio of less than -5% Is usually a good sign, especially If the company has positive earnings. McDonald’s DATA ratio is consistently negative and below the desired maximum of 0. 05. 4. Beanies M-Score: If the Wooster is greater than -1. 78 then we classify the firm as a possible manipulator. In this case, McDonald’s M-score is consistently below -2. 5. These scores indicate that McDonald’s does not exhibit the typical qualities of an earning manipulator.

Order an Essay Just
in a few Clicks!
Send Us Your Inquiry