Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

McDonald’s Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.45 0.46 0.43 0.36 0.44
Adjusted 0.48 0.48 0.45 0.38 0.46
Solvency Ratios
Debt to Equity
Reported — — — — —
Adjusted — — — — —
Debt to Capital
Reported 1.13 1.19 1.15 1.26 1.32
Adjusted 1.11 1.13 1.09 1.16 1.18
Financial Leverage
Reported — — — — —
Adjusted — — — — —
Profitability Ratios
Net Profit Margin
Reported 33.22% 26.65% 32.49% 24.63% 28.59%
Adjusted 30.73% 25.59% 30.81% 24.28% 30.01%
Return on Equity (ROE)
Reported — — — — —
Adjusted — — — — —
Return on Assets (ROA)
Reported 15.08% 12.25% 14.01% 8.99% 12.68%
Adjusted 14.77% 12.38% 13.92% 9.26% 13.66%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. McDonald’s Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. McDonald’s Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. McDonald’s Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. McDonald’s Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

McDonald’s Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Revenues 25,493,700 23,182,600 23,222,900 19,207,800 21,076,500
Total assets 56,146,800 50,435,600 53,854,300 52,626,800 47,510,800
Activity Ratio
Total asset turnover1 0.45 0.46 0.43 0.36 0.44
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted revenues2 25,526,000 23,202,100 23,259,200 19,249,200 21,109,300
Adjusted total assets3 53,123,900 47,958,600 51,497,300 50,491,100 46,371,900
Activity Ratio
Adjusted total asset turnover4 0.48 0.48 0.45 0.38 0.46

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).

1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 25,493,700 ÷ 56,146,800 = 0.45

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 25,526,000 ÷ 53,123,900 = 0.48

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. McDonald’s Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total debt 40,920,800 37,225,200 35,622,700 37,440,400 34,177,200
Shareholders’ equity (deficit) (4,706,700) (6,003,400) (4,601,000) (7,824,900) (8,210,300)
Solvency Ratio
Debt to equity1 — — — — —
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 53,091,100 48,699,000 49,349,100 51,463,200 47,556,000
Adjusted shareholders’ equity (deficit)3 (5,258,600) (5,725,100) (4,144,100) (7,233,000) (7,370,500)
Solvency Ratio
Adjusted debt to equity4 — — — — —

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).

1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 40,920,800 ÷ -4,706,700 = —

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity (deficit)
= 53,091,100 ÷ -5,258,600 = —

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total debt 40,920,800 37,225,200 35,622,700 37,440,400 34,177,200
Total capital 36,214,100 31,221,800 31,021,700 29,615,500 25,966,900
Solvency Ratio
Debt to capital1 1.13 1.19 1.15 1.26 1.32
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt2 53,091,100 48,699,000 49,349,100 51,463,200 47,556,000
Adjusted total capital3 47,832,500 42,973,900 45,205,000 44,230,200 40,185,500
Solvency Ratio
Adjusted debt to capital4 1.11 1.13 1.09 1.16 1.18

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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 40,920,800 ÷ 36,214,100 = 1.13

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 53,091,100 ÷ 47,832,500 = 1.11

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. McDonald’s Corp. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Total assets 56,146,800 50,435,600 53,854,300 52,626,800 47,510,800
Shareholders’ equity (deficit) (4,706,700) (6,003,400) (4,601,000) (7,824,900) (8,210,300)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets2 53,123,900 47,958,600 51,497,300 50,491,100 46,371,900
Adjusted shareholders’ equity (deficit)3 (5,258,600) (5,725,100) (4,144,100) (7,233,000) (7,370,500)
Solvency Ratio
Adjusted financial leverage4 — — — — —

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).

1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 56,146,800 ÷ -4,706,700 = —

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 53,123,900 ÷ -5,258,600 = —

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Revenues 25,493,700 23,182,600 23,222,900 19,207,800 21,076,500
Profitability Ratio
Net profit margin1 33.22% 26.65% 32.49% 24.63% 28.59%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 7,845,300 5,938,300 7,166,300 4,674,200 6,334,700
Adjusted revenues3 25,526,000 23,202,100 23,259,200 19,249,200 21,109,300
Profitability Ratio
Adjusted net profit margin4 30.73% 25.59% 30.81% 24.28% 30.01%

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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,468,800 ÷ 25,493,700 = 33.22%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 7,845,300 ÷ 25,526,000 = 30.73%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. McDonald’s Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Shareholders’ equity (deficit) (4,706,700) (6,003,400) (4,601,000) (7,824,900) (8,210,300)
Profitability Ratio
ROE1 — — — — —
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 7,845,300 5,938,300 7,166,300 4,674,200 6,334,700
Adjusted shareholders’ equity (deficit)3 (5,258,600) (5,725,100) (4,144,100) (7,233,000) (7,370,500)
Profitability Ratio
Adjusted ROE4 — — — — —

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).

1 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 8,468,800 ÷ -4,706,700 = —

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 7,845,300 ÷ -5,258,600 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Total assets 56,146,800 50,435,600 53,854,300 52,626,800 47,510,800
Profitability Ratio
ROA1 15.08% 12.25% 14.01% 8.99% 12.68%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income2 7,845,300 5,938,300 7,166,300 4,674,200 6,334,700
Adjusted total assets3 53,123,900 47,958,600 51,497,300 50,491,100 46,371,900
Profitability Ratio
Adjusted ROA4 14.77% 12.38% 13.92% 9.26% 13.66%

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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,468,800 ÷ 56,146,800 = 15.08%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 7,845,300 ÷ 53,123,900 = 14.77%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. McDonald’s Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.