Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

McDonald’s Corp., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash and equivalents	774)	1,085)	4,579)	2,584)	4,709)
Accounts and notes receivable	2,466)	2,383)	2,488)	2,115)	1,872)
Inventories, at cost, not in excess of market	61)	56)	53)	52)	56)
Prepaid expenses and other current assets	862)	1,075)	866)	673)	511)
Current assets	4,163)	4,599)	7,986)	5,424)	7,149)
Investments in and advances to affiliates	2,820)	2,710)	1,080)	1,065)	1,201)
Goodwill	3,354)	3,145)	3,040)	2,900)	2,783)
Miscellaneous	6,331)	6,094)	5,618)	4,707)	4,450)
Other assets	12,505)	11,949)	9,738)	8,672)	8,433)
Operating lease right-of-use asset, net	12,438)	11,319)	11,724)	11,052)	13,552)
Net property and equipment	28,241)	25,295)	24,908)	23,774)	24,721)
Finance lease right-of-use asset, net	2,168)	2,020)	1,790)	1,514)	—)
Net property and equipment, including finance lease right-of-use asset	30,409)	27,315)	26,698)	25,287)	24,721)
Long-term assets	55,352)	50,583)	48,160)	45,011)	46,706)
Total assets	59,515)	55,182)	56,147)	50,436)	53,854)

Based on: 10-K (reporting date: 2025-12-31), 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).

The asset composition of the company exhibits notable shifts over the five-year period. Current assets demonstrate volatility, while long-term assets generally trend upward. A significant portion of the company’s assets are held in other assets and net property and equipment, with both categories experiencing consistent growth.

Liquidity and Current Assets: Current assets decreased from 2021 to 2022, falling from US$7,149 million to US$5,424 million, before recovering to US$7,986 million in 2023. However, a substantial decline is observed in 2024, dropping to US$4,599 million, followed by a further decrease to US$4,163 million in 2025. This volatility is largely driven by fluctuations in cash and equivalents, which decreased significantly from 2021 to 2024, before stabilizing. Accounts and notes receivable show a steady increase over the period, while inventories remain relatively stable. Prepaid expenses and other current assets increased significantly between 2021 and 2024, then decreased slightly in 2025.
Long-Term Investments and Intangibles: Investments in and advances to affiliates show a modest increase over the period, rising from US$1,201 million in 2021 to US$2,820 million in 2025. Goodwill also demonstrates a consistent upward trend, increasing from US$2,783 million to US$3,354 million. These increases suggest a potential focus on strategic investments and acquisitions. The 'Miscellaneous' asset category shows a consistent and substantial increase throughout the period, growing from US$4,450 million to US$6,331 million, indicating a significant accumulation within this classification.
Fixed Assets and Leases: Net property and equipment remains a substantial component of total assets, fluctuating between US$23,774 million and US$28,241 million. The inclusion of finance lease right-of-use assets, beginning in 2022, adds to the total net property and equipment value, increasing from US$1,514 million to US$2,168 million by 2025. Operating lease right-of-use assets also show an increasing trend, rising from US$11,052 million in 2022 to US$12,438 million in 2025. Overall, long-term assets increased from US$46,706 million in 2021 to US$55,352 million in 2025.
Total Asset Trend: Total assets decreased from US$53,854 million in 2021 to US$50,436 million in 2022, then increased to US$56,147 million in 2023. A slight decrease to US$55,182 million is observed in 2024, followed by an increase to US$59,515 million in 2025. The overall trend indicates moderate asset growth over the five-year period, despite the volatility in current assets.

The company’s asset base is becoming increasingly weighted towards long-term assets, particularly net property and equipment, and the 'Miscellaneous' asset category. The fluctuations in current assets warrant further investigation to understand the underlying drivers and potential implications for liquidity.

McDonald’s Corp. (NYSE:MCD)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items