Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Short-term borrowings and current maturities of long-term debt 0.00 3.90 0.00 0.00 4.26
Accounts payable 1.86 1.96 1.94 1.87 1.41
Current operating lease liability 1.13 1.14 1.27 1.31 1.33
Current finance lease liability 0.02 0.08 0.04 0.00 0.00
Current lease liability 1.15% 1.23% 1.31% 1.31% 1.33%
Income taxes 0.65 1.26 0.55 0.67 1.41
Other taxes 0.41 0.48 0.51 0.44 0.43
Accrued interest 0.87 0.84 0.78 0.67 0.74
Accrued payroll and other liabilities 2.05 2.55 2.45 2.50 2.16
Current liabilities 7.00% 12.22% 7.54% 7.46% 11.75%
Long-term debt, excluding current maturities 69.63 66.17 71.19 66.15 66.88
Long-term operating lease liability 20.15 20.53 21.48 24.18 25.31
Long-term finance lease liability 3.21 2.72 2.58 0.00 0.00
Long-term lease liability 23.36% 23.26% 24.06% 24.18% 25.31%
Long-term income taxes 0.62 0.65 1.57 3.52 3.74
Deferred revenues, initial franchise fees 1.41 1.41 1.50 1.37 1.33
Other long-term liabilities 1.40 1.69 2.09 2.01 2.00
Deferred income taxes 3.47 2.99 3.96 3.85 3.85
Long-term liabilities 99.88% 96.17% 104.36% 101.08% 103.12%
Total liabilities 106.88% 108.38% 111.90% 108.54% 114.87%
Preferred stock, no par value; issued: none 0.00 0.00 0.00 0.00 0.00
Common stock, $.01 par value 0.03 0.03 0.03 0.03 0.03
Additional paid-in capital 16.82 15.84 16.95 15.28 15.02
Retained earnings 121.11 113.06 118.06 106.83 102.43
Accumulated other comprehensive loss -4.63 -4.37 -4.93 -4.78 -4.92
Common stock in treasury, at cost -140.22 -132.94 -142.01 -125.91 -127.44
Shareholders’ equity (deficit) -6.88% -8.38% -11.90% -8.54% -14.87%
Total liabilities and shareholders’ equity (deficit) 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2024-12-31), 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).

Short-term borrowings and current maturities of long-term debt
The proportion decreased from 4.26% in 2020 to 3.9% in 2023, with data missing for some years, suggesting a moderate reduction in reliance on short-term debt relative to total liabilities and equity.
Accounts payable
There is a gradual increase from 1.41% in 2020 to a peak of 1.96% in 2023, followed by a slight decrease to 1.86% in 2024, indicating stable but slightly increasing obligations to suppliers as a share of total liabilities and equity.
Current operating lease liability
A declining trend is observed, from 1.33% in 2020 to 1.13% in 2024, reflecting reduced current obligations under operating leases.
Current finance lease liability
The data begins at 0.04% in 2022, increases to 0.08% in 2023, and then falls to 0.02% in 2024, indicating fluctuating short-term finance lease obligations but at relatively low levels.
Current lease liability
This liability showed a steady decline from 1.33% in 2020 to 1.15% in 2024, consistent with reductions in operating lease liabilities.
Income taxes (current)
Values decreased from 1.41% in 2020 to 0.55% in 2022, spiked to 1.26% in 2023, then dropped again to 0.65% in 2024, indicating variability in current income tax obligations relative to total financing.
Other taxes
These liabilities remained relatively stable, fluctuating slightly but hovering around 0.4%-0.5% during the period.
Accrued interest
There is a gradual increase from 0.74% in 2020 to 0.87% in 2024, suggesting rising interest expense accruals as a proportion of total liabilities and equity.
Accrued payroll and other liabilities
Initially growing from 2.16% in 2020 to 2.55% in 2023, this metric declined to 2.05% in 2024, reflecting some volatility in short-term accrued obligations to employees and others.
Current liabilities (aggregate)
The percentage dropped markedly from 11.75% in 2020 to 7.46% in 2021 and 7.54% in 2022, rose sharply to 12.22% in 2023, and then decreased to 7% in 2024, indicating significant fluctuation in short-term obligations.
Long-term debt, excluding current maturities
This item stayed high throughout, ranging between 66.15% and 71.19%, peaking in 2022 before slightly declining and then rising again, denoting consistent substantial leverage on a long-term basis.
Long-term operating lease liability
A continuous decline from 25.31% in 2020 to 20.15% in 2024 signals a reduction in long-term operating lease commitments over the period.
Long-term finance lease liability
Absent until 2022 at 2.58%, it increased steadily to 3.21% by 2024, showing rising long-term finance lease obligations.
Long-term lease liability (total)
There is a slight downward trend from 25.31% in 2020 to 23.36% in 2024, reflecting the combined effects of decreasing operating lease and increasing finance lease liabilities.
Long-term income taxes
This liability sharply decreased from 3.74% in 2020 to 0.62% in 2024, indicating a significant reduction in deferred or long-term tax obligations.
Deferred revenues, initial franchise fees
These remained relatively steady with a slight increase from 1.33% in 2020 to 1.41% in 2024, indicating stable deferral of franchise-related income.
Other long-term liabilities
Declined gradually from 2% in 2020 to 1.4% in 2024, showing a reduction in miscellaneous long-term obligations.
Deferred income taxes
The percentage held relatively constant around 3.8%-4.0% until a dip to 2.99% in 2023, then rose to 3.47% in 2024, showing some variability in tax deferrals.
Long-term liabilities (aggregate)
Total long-term liabilities decreased from over 103% in 2020 to under 100% in 2024, indicating a gradual deleveraging in long-term commitments relative to total financing.
Total liabilities
Total liabilities as a share of total liabilities and shareholders’ equity decreased overall from 114.87% in 2020 to 106.88% in 2024, reflecting a modest reduction in total liabilities relative to the combined financing base.
Common stock
The proportion remained stable at 0.03% throughout the entire period, indicating no significant changes in common stock relative to total financing.
Additional paid-in capital
This metric increased from 15.02% in 2020 to 16.82% in 2024, indicating incremental capital contributions or retained earnings reinvested as equity over time.
Retained earnings
There was a notable increase from 102.43% in 2020 to 121.11% in 2024, showing strong accumulation of profits retained within the company.
Accumulated other comprehensive loss
This negative figure fluctuated slightly but remained around -4.5%, indicating consistent but moderate comprehensive losses affecting equity.
Common stock in treasury
The sizable negative value grew from -127.44% in 2020 to -140.22% in 2024, indicating increasing treasury stock holdings that reduce total shareholders’ equity.
Shareholders’ equity (deficit)
Although negative throughout, the equity deficit decreased from -14.87% in 2020 to -6.88% in 2024, demonstrating an improving equity position over the period.
Total liabilities and shareholders’ equity
Constantly normalized to 100%, serving as a baseline for the ratio calculations.