Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

$24.99

Balance Sheet: Liabilities and Stockholders’ Equity

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.

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.

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

US$ in millions

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
Accounts payable
Current operating lease liability
Current finance lease liability
Current lease liability
Income taxes
Other taxes
Accrued interest
Accrued payroll and other liabilities
Current liabilities
Long-term debt, excluding current maturities
Long-term operating lease liability
Long-term finance lease liability
Long-term lease liability
Long-term income taxes
Deferred revenues, initial franchise fees
Other long-term liabilities
Deferred income taxes
Long-term liabilities
Total liabilities
Preferred stock, no par value; issued: none
Common stock, $.01 par value
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Common stock in treasury, at cost
Shareholders’ equity (deficit)
Total liabilities and shareholders’ equity (deficit)

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 data shows a decrease from US$2244 million in 2020 to US$2192 million in 2023, with missing values in 2021 and 2022, suggesting a slight reduction in short-term financial obligations where data is available.
Accounts payable
Accounts payable increased from US$741 million in 2020 to a peak of US$1103 million in 2023, followed by a decline to US$1029 million in 2024, indicating generally rising payables over the period with some recent moderation.
Current operating lease liability
This liability remained relatively stable around US$700 million from 2020 to 2021, then declined gradually to US$625 million by 2024, reflecting a modest decrease in current operating lease obligations.
Current finance lease liability
Values appear only from 2022 onwards, starting at US$22 million and fluctuating, rising to US$46 million in 2023 before decreasing sharply to US$11 million in 2024. This suggests variability in short-term finance lease commitments in recent years.
Current lease liability
The total current lease liability, combining operating and finance leases, shows slight fluctuations, increasing from US$702 million in 2020 to US$688 million in 2023, then decreasing to US$636 million in 2024, indicating relatively stable but slightly declining current lease liabilities.
Income taxes
Income tax liabilities exhibited volatility, decreasing from US$741 million in 2020 to US$275 million in 2022, spiking again to US$705 million in 2023, and halving in 2024 to US$361 million. This pattern suggests significant fluctuations in current tax obligations over the period.
Other taxes
Other tax liabilities show a mild upward trend from US$227 million in 2020 to US$268 million in 2023, followed by a reduction to US$224 million in 2024, indicating relative stability with minor fluctuations.
Accrued interest
Accrued interest rose consistently from US$388 million in 2020 to US$482 million in 2024, reflecting increasing interest expense accruals over the years.
Accrued payroll and other liabilities
This category increased from US$1138 million in 2020 to US$1434 million in 2023, before declining to US$1129 million in 2024, indicating an overall rise followed by a drop in accrued obligations related to payroll and other items.
Current liabilities
Current liabilities displayed irregular changes, starting at US$6181 million in 2020, dropping sharply to US$4020 million in 2021 and US$3802 million in 2022, spiking back to US$6859 million in 2023, and decreasing again to US$3861 million in 2024, illustrating marked volatility likely driven by variations in individual components.
Long-term debt, excluding current maturities
Long-term debt steadily increased from US$35197 million in 2020 to US$38424 million in 2024, demonstrating a consistent rise in long-term borrowing.
Long-term operating lease liability
There is a declining trend in long-term operating lease liabilities, falling from US$13321 million in 2020 to US$11118 million in 2024, indicating a reduction in operating lease commitments over the period.
Long-term finance lease liability
Introduced in 2022 at US$1300 million, this liability increased progressively to US$1770 million by 2024, signifying growing long-term finance lease obligations.
Long-term lease liability
Total long-term lease liability reduced from US$13321 million in 2020 to US$12888 million in 2024, with a temporary rise in intermediate years, indicating some fluctuation but a general slight decrease overall.
Long-term income taxes
Long-term income tax liabilities decreased markedly from US$1971 million in 2020 to US$344 million in 2024, indicating significant reductions in deferred or long-term tax obligations.
Deferred revenues, initial franchise fees
This category consistently increased from US$702 million in 2020 to US$790 million in 2023, then slightly declined to US$778 million in 2024, showing a steady accumulation of deferred franchise fee income.
Other long-term liabilities
Other long-term liabilities exhibited a gradual decline from US$1054 million in 2020 to US$771 million in 2024, indicating a reduction in miscellaneous long-term obligations.
Deferred income taxes
Deferred income taxes fluctuated slightly, initially rising from US$2026 million in 2020 to US$2076 million in 2021, then decreasing to US$1681 million in 2023, before increasing again to US$1914 million in 2024, reflecting variability in deferred tax assets or liabilities.
Long-term liabilities
Overall long-term liabilities remained relatively stable, hovering around US$54 billion, with a slight decrease to US$52637 million in 2022 followed by a rebound to US$55119 million in 2024. This stability suggests controlled long-term financial obligations despite some fluctuations in components.
Total liabilities
Total liabilities showed a downward trend from US$60452 million in 2020 to US$56439 million in 2022, then increased to US$60854 million in 2023 before declining slightly to US$58980 million in 2024, indicating some volatility but general maintenance of overall liability levels.
Common stock and additional paid-in capital
Common stock remained constant at US$17 million throughout. Additional paid-in capital steadily increased from US$7904 million in 2020 to US$9281 million in 2024, demonstrating growing equity contributions or retained capital surplus.
Retained earnings
Retained earnings rose consistently from US$53908 million in 2020 to US$66834 million in 2024, reflecting ongoing profitability and accumulation of earnings.
Accumulated other comprehensive loss
This loss remained relatively stable, fluctuating mildly around negative US$2500 million, indicating unchanged or consistent other comprehensive income or loss elements.
Common stock in treasury
The treasury stock balance increased in absolute value from negative US$67066 million in 2020 to negative US$77376 million in 2024, showing an increase in treasury stock holdings and thus a reduction in outstanding shares.
Shareholders’ equity (deficit)
Despite increases in paid-in capital and retained earnings, shareholders’ equity remained negative throughout the period, improving from negative US$7825 million in 2020 to negative US$3797 million in 2024, indicating an ongoing deficit but with a narrowing gap.
Total liabilities and shareholders’ equity
This total ranged around US$50–56 billion, showing variation consistent with fluctuations in liabilities and equity components, with a low in 2022 and higher levels in other years, illustrating the net balance sheet size.