Financial statement analysis and common stock valuation

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by McDonald’s Corp..

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about McDonald’s Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on McDonald’s Corp. balance sheet.

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Common Stock Valuation Ratios
Quarterly Data

Relative valuation technique determine the value of McDonald’s Corp. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock value, such as earnings, book value, and sales.

• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Cash Flow Statement

The cash flow statement provides information about McDonald’s Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on McDonald’s Corp. balance sheet.

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of McDonald’s Corp., the result of its operating activities.

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently McDonald’s Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the McDonald’s Corp. assets. Operating performance ratios describe the relationship between the McDonald’s Corp. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to McDonald’s Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical