Papa John's Yum! Brands Total assets $495 $8,075 Total liebilities 444 7,164 Total stockholders' equity 51 911

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following total liabilities and stockholders* equity information (in millions) is provided for Papa John's International, Inc. (PZZA) and Yum! Brands, Inc. (YUM) at the end of a recent year:

Yum! Brands is a much larger company than is Papa John's; however, both companies compete internationally in the fast food business. Papa John's is primarily in the carry-out and delivery pizza business, while Yum! Brands is in the quick-service restaurant business with its Pizza Hut, Taco Bell, and KFC brands.
a. Compute the ratio of liabilities to stockholders' equity for each company. Round to one dec­ imal place.
b. What conclusions regarding the margin of protection to creditors can you draw for these two companies?
c. Which company is more risky to creditors?

Papa John's
Yum! Brands
Total assets
$495
$8,075
Total liebilities
444
7,164
Total stockholders' equity
51
911
Transcribed Image Text:Papa John's Yum! Brands Total assets $495 $8,075 Total liebilities 444 7,164 Total stockholders' equity 51 911
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