Stock Analysis on Net
Stock Analysis on Net
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McDonald’s Corp. (NYSE:MCD)

Balance Sheet: Liabilities and Stockholders’ Equity

Beginner level

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

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Accounts payable 741,300  988,200  1,207,900  924,800  756,000 
Current lease liability 701,500  621,000  —  —  — 
Income taxes 741,100  331,700  228,300  265,800  267,200 
Other taxes 227,000  247,500  253,700  275,400  266,300 
Accrued interest 388,400  337,800  297,000  278,400  247,500 
Accrued payroll and other liabilities 1,138,300  1,035,700  986,600  1,146,200  1,159,300 
Current maturities of long-term debt 2,243,600  59,100  —  —  77,200 
Liabilities of businesses held for sale —  —  —  —  694,800 
Current liabilities 6,181,200  3,621,000  2,973,500  2,890,600  3,468,300 
Long-term debt, excluding current maturities 35,196,800  34,118,100  31,075,300  29,536,400  25,878,500 
Long-term lease liability 13,321,300  12,757,800  —  —  — 
Long-term income taxes 1,970,700  2,265,900  2,081,200  2,370,900  1,010,600 
Deferred revenues, initial franchise fees 702,000  660,600  627,800  —  — 
Other long-term liabilities 1,054,100  979,600  1,096,300  1,154,400  1,053,700 
Deferred income taxes 2,025,600  1,318,100  1,215,500  1,119,400  1,817,100 
Long-term liabilities 54,270,500  52,100,100  36,096,100  34,181,100  29,759,900 
Total liabilities 60,451,700  55,721,100  39,069,600  37,071,700  33,228,200 
Preferred stock, no par value; none issued —  —  —  —  — 
Common stock, $.01 par value 16,600  16,600  16,600  16,600  16,600 
Additional paid-in capital 7,903,600  7,653,900  7,376,000  7,072,400  6,757,900 
Retained earnings 53,908,100  52,930,500  50,487,000  48,325,800  46,222,700 
Accumulated other comprehensive loss (2,586,800) (2,482,700) (2,609,500) (2,178,400) (3,092,900)
Common stock in treasury, at cost (67,066,400) (66,328,600) (61,528,500) (56,504,400) (52,108,600)
Shareholders’ equity (deficit) (7,824,900) (8,210,300) (6,258,400) (3,268,000) (2,204,300)
Total liabilities and shareholders’ equity (deficit) 52,626,800  47,510,800  32,811,200  33,803,700  31,023,900 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

Balance sheet item Description The company
Current liabilities Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. McDonald’s Corp.’s current liabilities increased from 2018 to 2019 and from 2019 to 2020.
Long-term liabilities Amount of obligation due after one year or beyond the normal operating cycle, if longer. McDonald’s Corp.’s long-term liabilities increased from 2018 to 2019 and from 2019 to 2020.
Total liabilities Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. McDonald’s Corp.’s total liabilities increased from 2018 to 2019 and from 2019 to 2020.
Shareholders’ equity (deficit) Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity’s stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. McDonald’s Corp.’s shareholders’ equity (deficit) decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.