Required: b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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McDonald’s conducts operations worldwide and is managed in three primary geographic segments: U.S., International Lead Markets (including Australia, Canada, France, Germany, and the UK), and High Growth Markets (including China, Italy, Korea, Poland, Russia, Spain, Switzerland, and the Netherlands). A hybrid geographic/corporate segment, Foundational Markets & Corporate, reports on the results of all other countries as well as any unallocated amounts. McDonald’s allocates resources to, and evaluates the performance of, its segments based on operating income. The asset totals disclosed by geography are directly managed by those regions and include accounts receivable, inventory, certain fixed assets, and certain other assets. Corporate assets primarily include cash and cash equivalents, investments, deferred tax assets, and other assets. Refer to the following geographic segment data (in millions) from the 2017 annual report of McDonald’s Corp.:
 

High
Foundational
International
Growth
Markets &
Total
U.S.
Lead Markets
Markets
$ 8,006.4
8,252.7
8,558.9
$ 4,022.4
3,768.7
3,612.0
Corporate
$1,940.5
2,985.1
3,066.4
$
Company
$22,820.4
24,621.9
25,413.0
$ 9,552.7
$ 7,340.3
7,223.4
$5,533.2
6,160.7
Revenues
2017
2016
7,614.9
$ 3,166.5
2,838.4
2,712.6
$
6,172.8
$2,001.4
1,048.8
2015
Operating income
2017
362.4
7,744.5
7,145.5
$ 1,363.4
1,516.5
1,555.7
$33,803.7
31,023.9
37,938.7
2016
88.6
2015
841.1
(20.2)
$
192.6
Depreciation and amortization expense
2017
524.1
461.1
$
231.7
146.5
2016
510.3
451.6
362.0
2015
515.2
460.9
363.9
215.7
$12,648.6
11,960.6
11,806.1
$11,844.3
9,112.5
11,136.3
$4,830.1
4,742.1
9,747.7
Assets
2017
$4,480.7
2016
5,208.6
5,248.6
2015
Required:
b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017.
(Do not round intermediate calculations. Round your percentage answers to 1 decimal place.)
ROI(%)
U.S.
%
International Lead Markets
%
High Growth Markets
%
Transcribed Image Text:High Foundational International Growth Markets & Total U.S. Lead Markets Markets $ 8,006.4 8,252.7 8,558.9 $ 4,022.4 3,768.7 3,612.0 Corporate $1,940.5 2,985.1 3,066.4 $ Company $22,820.4 24,621.9 25,413.0 $ 9,552.7 $ 7,340.3 7,223.4 $5,533.2 6,160.7 Revenues 2017 2016 7,614.9 $ 3,166.5 2,838.4 2,712.6 $ 6,172.8 $2,001.4 1,048.8 2015 Operating income 2017 362.4 7,744.5 7,145.5 $ 1,363.4 1,516.5 1,555.7 $33,803.7 31,023.9 37,938.7 2016 88.6 2015 841.1 (20.2) $ 192.6 Depreciation and amortization expense 2017 524.1 461.1 $ 231.7 146.5 2016 510.3 451.6 362.0 2015 515.2 460.9 363.9 215.7 $12,648.6 11,960.6 11,806.1 $11,844.3 9,112.5 11,136.3 $4,830.1 4,742.1 9,747.7 Assets 2017 $4,480.7 2016 5,208.6 5,248.6 2015 Required: b. Using the DuPont model to show margin and turnover, calculate ROI for each of the three primary geographic segments for 2017. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.) ROI(%) U.S. % International Lead Markets % High Growth Markets %
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