For comparison purposes, it also integrates the industry averages. This tripe presentation of the ratios allows for the comparison of the company's evaluation relative to itself, as well as its current comparison relative to the other players in the restaurants' industry.

Table 4: Financial ratios

2011

5-year average

Industry average

Price to earnings ratio

20.77

21.52

35.11

Sales

3.63

7.02

9.97

Debt to equity ratio

0.0

0.19

78.34

Gross profit margin

74.71

74.81

57.78

Net profit margin

5.28

4.28

1.49

Return on equity

NA*

11.7

10.22

Return on assets

8.3

6.1

6.15

Return on invested capital

14.7

7.52

7.38

* The return on equity cannot be collected as the company has not made public the total shareholder equity for 2010, with the last data in the annual report only revealing the equity for 2009.

* Data collected from Reuters and Forbes

Interpretation of the financial ratios:

The price to earnings...
[ View Full Essay]