McDonald's Corp. (MCD)

Basic information about McDonald's Corp.

Main items of McDonald's Corp.'s financial statements.

• Income Statement
• Assets
• Liabilities and Stockholders' Equity
• Statement of Cash Flows
• Per Share Data

McDonald's Corp.'s activity ratio calculated as total revenue divided by total assets.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

McDonald's Corp.'s liquidity ratio calculated as current assets divided by current liabilities.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

McDonald's Corp.'s solvency ratio calculated as total debt divided by total shareholders' equity.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

McDonald's Corp.'s profitability ratio calculated as operating income divided by revenue.

• Calculation
• Comparison to Competitors

McDonald's Corp.'s indicator of profitability, calculated as net income divided by revenue.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

McDonald's Corp.'s profitability ratio calculated as net income divided by shareholders' equity.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

McDonald's Corp.'s profitability ratio calculated as net income divided by total assets.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

The P/E ratio tells analyst how much an investor in McDonald's Corp.'s common stock pays per dollar of current earnings.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit.

• Calculation
• Comparison to Competitors

An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return.

• Calculation
• Comparison to Competitors
• Comparison to Travel & Leisure Sector
• Comparison to Consumer Services Industry

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

Comprehensive income is the change in equity (net assets) of McDonald's Corp. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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

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.

The cash flow statement provides information about McDonald's Corp.'s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on McDonald's Corp.'s statement of financial position.

Differences in accounting methods affect comparisons between companies, and analysts make adjustments to reported financial statements in the interest of comparability.

• Adjustments to Current Assets
• Adjustments to Total Assets
• Adjustments to Current Liabilities
• Adjustments to Total Liabilities
• Adjustments to Stockholders' Equity
• Adjustments to Capitalization Table
• Adjustments to Reported Income

Income statement components (revenuess and expenses) shown as percentage of total sales.

Assets components shown as percentage of total assets.

Liabilities and stockholders' equity components shown as percentage of total liabilities and stockholders' equity.

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

• 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

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

• Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Measures the adequacy of a McDonald's Corp.'s cash resources to meet its near-term cash obligations.

• Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Examines McDonald's Corp.'s capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Interest Coverage

Measures the income of McDonald's Corp. relative to its revenuess and invested capital.

• Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

An approach to decomposing McDonald's Corp.'s return on equity as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Way Decomposition of ROA
• Four-Way Decomposition of ROA
• Decomposition of Net Profit Margin

Differences in accounting methods affect financial ratio comparisons between companies, and analysts make adjustments to reported financials in the interest of comparability.

• Adjusted Ratios (Summary)
• Adjusted Total Asset Turnover
• Adjusted Current Ratio
• Adjusted Debt to Equity
• Adjusted Debt to Capital
• Adjusted Financial Leverage
• Adjusted Net Profit Margin
• Adjusted Return on Equity (ROE)
• Adjusted Return on Assets (ROA)

Internal management performance measure that compares net operating profit after taxes to total cost of capital. Indicates how profitable McDonald's Corp. projects are as a sign of management performance.

• Economic Profit
• Net Operating Profit after Taxes (NOPAT)
• Cash Operating Taxes
• Invested Capital
• Cost of Capital
• Economic Spread
• Economic Profit Margin

Return on capital (ROC) is after tax rate of return on net business assets.

• Return on Invested Capital (ROIC)

MVA is a measure of the value McDonald's Corp. has created in excess of the resources already committed to the enterprise.

• MVA
• MVA Spread
• MVA Margin

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's value, such as earnings, book value, and sales.

• Current Valuation Ratios
• 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)

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

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Free cash flow to the firm is the cash flow available to the McDonald's Corp.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Free cash flow to equity is the cash flow available to McDonald's Corp.'s 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

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets' systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Systematic Risk (β) Estimation
• Expected Rate of Return

The Dividend Discount Model (DDM) is a technique for estimating the value of a share of McDonald's Corp.'s common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

The FCFF valuation approach estimates the value of the firm as the present value of future FCFF discounted at the weighted average cost of capital (WACC).

• Intrinsic Stock Value (Valuation Summary)
• Weighted Average Cost of Capital (WACC)
• FCFF Growth Rate (g)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

• Revenue Recognition Accounting Policy
• Revenues as Reported

• Property, Plant and Equipment Accounting Policy
• Property, Plant and Equipment Disclosure
• Property, Plant and Equipment Ratios (Summary)
• Average Age
• Estimated Total Useful Life
• Estimated Age, Time Elapsed Since Purchase
• Estimated Remaining Life

• Goodwill and Intangible Assets Accounting Policy
• Analyst Adjustments: Removal of Goodwill
• Adjusted Ratios: Removal of Goodwill (Summary)
• Adjusted Net Profit Margin
• Adjusted Total Asset Turnover
• Adjusted Financial Leverage
• Adjusted Return on Equity (ROE)
• Adjusted Return on Assets (ROA)

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt
• Interest Costs Incurred
• Adjusted Interest Coverage Ratio

• Income Tax Accounting Policy
• Income Tax Expense (Benefit)
• Effective Income Tax Rate (EITR)
• Components of Deferred Tax Assets and Liabilities
• Deferred Tax Assets and Liabilities, Classification
• Analyst Adjustments: Removal of Deferred Taxes
• Adjusted Ratios: Removal of Deferred Taxes (Summary)
• Adjusted Current Ratio
• Adjusted Net Profit Margin
• Adjusted Total Asset Turnover
• Adjusted Financial Leverage
• Adjusted Return on Equity (ROE)
• Adjusted Return on Assets (ROA)

• Present Value of Future Operating Lease Payments
• Analyst Adjustments for Operating Leases
• Adjusted Ratios for Operating Leases (Summary)
• Adjusted Total Asset Turnover
• Adjusted Debt to Equity
• Adjusted Return on Assets (ROA)
• Adjusted Interest Coverage
• Estimation of Depreciation Expense, Operating Leased Assets
• Estimation of Interest Expense, Operating Lease Obligations
• Present Value of Operating Lease Payments, at Beginning of Year

Financial reporting quality relates to the accuracy with which McDonald's Corp.'s reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.

Aggregate accruals deriving measures of the accrual component of McDonald's Corp.'s earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio