Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 — = 15.08% × —
Sep 30, 2023 — = 16.00% × —
Jun 30, 2023 — = 15.86% × —
Mar 31, 2023 — = 13.22% × —
Dec 31, 2022 — = 12.25% × —
Sep 30, 2022 — = 12.19% × —
Jun 30, 2022 — = 12.35% × —
Mar 31, 2022 — = 13.98% × —
Dec 31, 2021 — = 14.01% × —
Sep 30, 2021 — = 13.81% × —
Jun 30, 2021 — = 13.29% × —
Mar 31, 2021 — = 10.10% × —
Dec 31, 2020 — = 8.99% × —
Sep 30, 2020 — = 9.72% × —
Jun 30, 2020 — = 9.55% × —
Mar 31, 2020 — = 11.48% × —
Dec 31, 2019 — = 12.68% × —
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Three-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 — = 33.22% × 0.45 × —
Sep 30, 2023 — = 33.31% × 0.48 × —
Jun 30, 2023 — = 33.06% × 0.48 × —
Mar 31, 2023 — = 29.36% × 0.45 × —
Dec 31, 2022 — = 26.65% × 0.46 × —
Sep 30, 2022 — = 25.41% × 0.48 × —
Jun 30, 2022 — = 25.77% × 0.48 × —
Mar 31, 2022 — = 29.93% × 0.47 × —
Dec 31, 2021 — = 32.49% × 0.43 × —
Sep 30, 2021 — = 32.33% × 0.43 × —
Jun 30, 2021 — = 31.72% × 0.42 × —
Mar 31, 2021 — = 26.31% × 0.38 × —
Dec 31, 2020 — = 24.63% × 0.36 × —
Sep 30, 2020 — = 25.60% × 0.38 × —
Jun 30, 2020 — = 24.78% × 0.39 × —
Mar 31, 2020 — = 27.86% × 0.41 × —
Dec 31, 2019 — = 28.59% × 0.44 × —
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Five-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 — = 0.80 × 0.89 × 46.61% × 0.45 × —
Sep 30, 2023 — = 0.81 × 0.89 × 46.65% × 0.48 × —
Jun 30, 2023 — = 0.80 × 0.89 × 46.49% × 0.48 × —
Mar 31, 2023 — = 0.80 × 0.87 × 41.86% × 0.45 × —
Dec 31, 2022 — = 0.79 × 0.87 × 38.96% × 0.46 × —
Sep 30, 2022 — = 0.78 × 0.87 × 37.71% × 0.48 × —
Jun 30, 2022 — = 0.78 × 0.87 × 37.79% × 0.48 × —
Mar 31, 2022 — = 0.82 × 0.88 × 41.62% × 0.47 × —
Dec 31, 2021 — = 0.83 × 0.89 × 44.41% × 0.43 × —
Sep 30, 2021 — = 0.82 × 0.88 × 44.61% × 0.43 × —
Jun 30, 2021 — = 0.82 × 0.87 × 44.11% × 0.42 × —
Mar 31, 2021 — = 0.78 × 0.84 × 40.20% × 0.38 × —
Dec 31, 2020 — = 0.77 × 0.83 × 38.31% × 0.36 × —
Sep 30, 2020 — = 0.78 × 0.84 × 39.13% × 0.38 × —
Jun 30, 2020 — = 0.76 × 0.84 × 38.61% × 0.39 × —
Mar 31, 2020 — = 0.76 × 0.87 × 42.04% × 0.41 × —
Dec 31, 2019 — = 0.75 × 0.88 × 43.37% × 0.44 × —
Sep 30, 2019 — = — × — × — × — × —
Jun 30, 2019 — = — × — × — × — × —
Mar 31, 2019 — = — × — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Two-Component Disaggregation of ROA

McDonald’s Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 15.08% = 33.22% × 0.45
Sep 30, 2023 16.00% = 33.31% × 0.48
Jun 30, 2023 15.86% = 33.06% × 0.48
Mar 31, 2023 13.22% = 29.36% × 0.45
Dec 31, 2022 12.25% = 26.65% × 0.46
Sep 30, 2022 12.19% = 25.41% × 0.48
Jun 30, 2022 12.35% = 25.77% × 0.48
Mar 31, 2022 13.98% = 29.93% × 0.47
Dec 31, 2021 14.01% = 32.49% × 0.43
Sep 30, 2021 13.81% = 32.33% × 0.43
Jun 30, 2021 13.29% = 31.72% × 0.42
Mar 31, 2021 10.10% = 26.31% × 0.38
Dec 31, 2020 8.99% = 24.63% × 0.36
Sep 30, 2020 9.72% = 25.60% × 0.38
Jun 30, 2020 9.55% = 24.78% × 0.39
Mar 31, 2020 11.48% = 27.86% × 0.41
Dec 31, 2019 12.68% = 28.59% × 0.44
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

McDonald’s Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 15.08% = 0.80 × 0.89 × 46.61% × 0.45
Sep 30, 2023 16.00% = 0.81 × 0.89 × 46.65% × 0.48
Jun 30, 2023 15.86% = 0.80 × 0.89 × 46.49% × 0.48
Mar 31, 2023 13.22% = 0.80 × 0.87 × 41.86% × 0.45
Dec 31, 2022 12.25% = 0.79 × 0.87 × 38.96% × 0.46
Sep 30, 2022 12.19% = 0.78 × 0.87 × 37.71% × 0.48
Jun 30, 2022 12.35% = 0.78 × 0.87 × 37.79% × 0.48
Mar 31, 2022 13.98% = 0.82 × 0.88 × 41.62% × 0.47
Dec 31, 2021 14.01% = 0.83 × 0.89 × 44.41% × 0.43
Sep 30, 2021 13.81% = 0.82 × 0.88 × 44.61% × 0.43
Jun 30, 2021 13.29% = 0.82 × 0.87 × 44.11% × 0.42
Mar 31, 2021 10.10% = 0.78 × 0.84 × 40.20% × 0.38
Dec 31, 2020 8.99% = 0.77 × 0.83 × 38.31% × 0.36
Sep 30, 2020 9.72% = 0.78 × 0.84 × 39.13% × 0.38
Jun 30, 2020 9.55% = 0.76 × 0.84 × 38.61% × 0.39
Mar 31, 2020 11.48% = 0.76 × 0.87 × 42.04% × 0.41
Dec 31, 2019 12.68% = 0.75 × 0.88 × 43.37% × 0.44
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

McDonald’s Corp., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 33.22% = 0.80 × 0.89 × 46.61%
Sep 30, 2023 33.31% = 0.81 × 0.89 × 46.65%
Jun 30, 2023 33.06% = 0.80 × 0.89 × 46.49%
Mar 31, 2023 29.36% = 0.80 × 0.87 × 41.86%
Dec 31, 2022 26.65% = 0.79 × 0.87 × 38.96%
Sep 30, 2022 25.41% = 0.78 × 0.87 × 37.71%
Jun 30, 2022 25.77% = 0.78 × 0.87 × 37.79%
Mar 31, 2022 29.93% = 0.82 × 0.88 × 41.62%
Dec 31, 2021 32.49% = 0.83 × 0.89 × 44.41%
Sep 30, 2021 32.33% = 0.82 × 0.88 × 44.61%
Jun 30, 2021 31.72% = 0.82 × 0.87 × 44.11%
Mar 31, 2021 26.31% = 0.78 × 0.84 × 40.20%
Dec 31, 2020 24.63% = 0.77 × 0.83 × 38.31%
Sep 30, 2020 25.60% = 0.78 × 0.84 × 39.13%
Jun 30, 2020 24.78% = 0.76 × 0.84 × 38.61%
Mar 31, 2020 27.86% = 0.76 × 0.87 × 42.04%
Dec 31, 2019 28.59% = 0.75 × 0.88 × 43.37%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q4 2023 is the decrease in effect of interest expense measured by interest burden ratio.