Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
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- Income Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
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McDonald’s Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
The capital structure is characterized by a high degree of leverage and a persistent shareholders' equity deficit, although a gradual trend toward balance sheet stabilization is evident over the analyzed period. Total liabilities as a percentage of total liabilities and shareholders' equity decreased from 114.16% in March 2021 to 102.14% by March 2026, indicating a systematic reduction in the reliance on liabilities relative to the total capital base.
- Long-Term Debt and Lease Obligations
- Long-term debt remains the primary component of the capital structure, consistently representing between 65% and 72% of the total balance sheet. A peak in leverage was observed in September 2022 at 71.89%, followed by a gradual decline to 66.80% by March 2026. Long-term lease liabilities have remained relatively stable, fluctuating within a narrow range between 22.67% and 25.66%, reflecting a consistent approach to lease-based asset financing.
- Shareholders' Equity and Treasury Stock
- A significant equity deficit is maintained throughout the period, though the deficit has narrowed substantially from -14.16% in March 2021 to -2.14% in March 2026. This deficit is not driven by operational losses, as retained earnings remain strongly positive, ranging from 106.01% to 121.80%. Instead, the deficit is primarily a result of aggressive share repurchase activity, as evidenced by common stock in treasury values that consistently exceed 130% of the total balance sheet.
- Current Liability Trends
- Current liabilities generally represent a small fraction of the total capital structure, typically oscillating between 7% and 9%. Occasional spikes, such as the increase to 12.22% in December 2023, are observed, but the overall trend remains stable. Accounts payable and accrued payroll liabilities show minimal volatility, suggesting consistent short-term operational management.
- Tax Liability Reductions
- A marked downward trend is observed in long-term income taxes, which plummeted from 3.84% in March 2021 to 0.25% by March 2026. Similarly, deferred income taxes declined from a peak of 4.57% in June 2022 to 2.03% by March 2026, contributing to the overall reduction in total long-term liabilities.
In summary, the financial profile reveals a strategy of utilizing high levels of long-term debt to fund operations and aggressive shareholder returns via treasury stock acquisitions. The convergence of total liabilities toward 100% and the shrinking equity deficit suggest a gradual move toward a more balanced capital position by the end of the reporting period.