To get an overall picture of each company's capital structure, it is helpful to look at a the Key Ratios screen and then select the Financial Health tab. Common size balance sheet data are provided over a 10-year period. What, if any, are the major trends that emerge when you're looking at those data? Do those companies tend to have relatively high or relatively low levels of debt? Do these companies have significant levels of current liabilities? Have their capital structures changed over time?
Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions.
This chapter provides an overview of the effects of leverage and describes the process that firms use to determine their optimal capital structure. The chapter also indicates that capital structures tend to vary across industries and across countries. If you are interested in exploring these differences in more detail, the Morningstar website provides information about the capital structures of each of the companies it follows. The following discussion questions demonstrate how we can use this information to evaluate the capital structures for four restaurant companies: Cheesecake Factory (CAKE), Chipotle Mexican Grill (CMG), Ruby Tuesday (RT), and O'Charley's Inc. (CHUX).
Fundamentals of Financial Management (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Cornerstones of Financial Accounting
Essentials of Business Communication (MindTap Course List)
Accounting Information Systems
Principles of Microeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Probability and Statistics for Engineering and the Sciences
Financial & Managerial Accounting
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Foundations of Business (MindTap Course List)
Corporate Financial Accounting
Financial Accounting
Financial And Managerial Accounting
Management, Loose-Leaf Version
Essentials of Economics (MindTap Course List)
College Accounting, Chapters 1-27
Contemporary Marketing
Financial & Managerial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial Accounting
MKTG 12:STUDENT ED.-TEXT
Intermediate Accounting: Reporting And Analysis
College Accounting (Book Only): A Career Approach
Accounting Information Systems
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
College Accounting (Book Only): A Career Approach
Exploring Economics
Accounting (Text Only)
Statistics for Business & Economics, Revised (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Principles of Macroeconomics (MindTap Course List)
Survey of Accounting (Accounting I)
Purchasing and Supply Chain Management
Economics (MindTap Course List)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Macroeconomics
Economics For Today
Practical Management Science
Corporate Financial Accounting
Microeconomics
Cornerstones of Cost Management (Cornerstones Series)
Microeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY