Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

McDonald’s Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Short-term borrowings and current maturities of long-term debt	2,192,400)	—)	—)	2,243,600)	59,100)
Accounts payable	1,102,900)	980,200)	1,006,800)	741,300)	988,200)
Current operating lease liability	642,600)	639,600)	705,500)	701,500)	621,000)
Current finance lease liability	45,500)	21,500)	—)	—)	—)
Current lease liability	688,100)	661,100)	705,500)	701,500)	621,000)
Income taxes	705,100)	274,900)	360,700)	741,100)	331,700)
Other taxes	268,000)	255,100)	236,700)	227,000)	247,500)
Accrued interest	468,900)	393,400)	363,300)	388,400)	337,800)
Accrued payroll and other liabilities	1,433,600)	1,237,400)	1,347,000)	1,138,300)	1,035,700)
Current liabilities	6,859,000)	3,802,100)	4,020,000)	6,181,200)	3,621,000)
Long-term debt, excluding current maturities	37,152,900)	35,903,500)	35,622,700)	35,196,800)	34,118,100)
Long-term operating lease liability	11,527,700)	10,834,200)	13,020,900)	13,321,300)	12,757,800)
Long-term finance lease liability	1,530,000)	1,300,200)	—)	—)	—)
Long-term lease liability	13,057,700)	12,134,400)	13,020,900)	13,321,300)	12,757,800)
Long-term income taxes	363,200)	791,900)	1,896,800)	1,970,700)	2,265,900)
Deferred revenues, initial franchise fees	790,100)	757,800)	738,300)	702,000)	660,600)
Other long-term liabilities	949,700)	1,051,800)	1,081,000)	1,054,100)	979,600)
Deferred income taxes	1,680,900)	1,997,500)	2,075,600)	2,025,600)	1,318,100)
Long-term liabilities	53,994,500)	52,636,900)	54,435,300)	54,270,500)	52,100,100)
Total liabilities	60,853,500)	56,439,000)	58,455,300)	60,451,700)	55,721,100)
Preferred stock, no par value; issued: none	—)	—)	—)	—)	—)
Common stock, $.01 par value	16,600)	16,600)	16,600)	16,600)	16,600)
Additional paid-in capital	8,892,900)	8,547,100)	8,231,600)	7,903,600)	7,653,900)
Retained earnings	63,479,900)	59,543,900)	57,534,700)	53,908,100)	52,930,500)
Accumulated other comprehensive loss	(2,456,000)	(2,486,600)	(2,573,700)	(2,586,800)	(2,482,700)
Common stock in treasury, at cost	(74,640,100)	(71,624,400)	(67,810,200)	(67,066,400)	(66,328,600)
Shareholders’ equity (deficit)	(4,706,700)	(6,003,400)	(4,601,000)	(7,824,900)	(8,210,300)
Total liabilities and shareholders’ equity (deficit)	56,146,800)	50,435,600)	53,854,300)	52,626,800)	47,510,800)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	McDonald’s Corp. current liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Long-term liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	McDonald’s Corp. long-term liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	McDonald’s Corp. total liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Shareholders’ equity (deficit)	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	McDonald’s Corp. shareholders’ equity (deficit) decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

McDonald’s Corp. (NYSE:MCD)

Balance Sheet: Liabilities and Stockholders’ Equity