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Return on Assets and Return on Equity of MAC are higher than that of AT&T.Debt ratio of AT&T is higher than that of MCD.
AT&T, which is a communication holding company, must have higher expenses on research and development and operating assets impairment. MCD is a food service company, it doesn’t need too much expenses on research and development. So, the Gross Profit Margin of AT&T are higher while the Net income Margin are lower than that of MCD. The result is consistent with the common sense.
Q: Is company on the right track?
A: Both companies are on the right track.
Q: Which of the two competitors is stronger?
A: From the aspect of PE ratio, I will think MCD is stronger than AT&T.