McDonald’s Corp. (NYSE:MCD)

The financial data reveals several key trends and movements over the five-year period ending in 2024. Net income demonstrates overall growth with fluctuations, increasing from 4,731 million US dollars in 2020 to a peak of 8,469 million in 2023, followed by a slight decrease to 8,223 million in 2024. Depreciation and amortization steadily rise each year, indicating ongoing investment in assets or changes in asset bases.

Deferred income taxes show negative values from 2021 onwards, reflecting potential tax timing differences or adjustments, with notable volatility year to year. Share-based compensation expenses have increased gradually, highlighting growing employee compensation costs related to stock. The line item for net gain or loss on sales of restaurants and other businesses is erratic, with a sharp spike in 2022, suggesting a one-time significant transaction during that year.

Charges and credits also fluctuate significantly but without a clear directional trend, suggesting variable non-operating or non-recurring items impacting the financials. Working capital components show mixed patterns: accounts receivable and inventories have inconsistent changes, accounts payable generally increase except for a slight decline in 2024, and other accrued liabilities vary considerably, most notably a decline in 2024.

Changes in working capital are positive only in 2021 but negative in other years, indicating occasional tightening in liquidity management. Cash from operations aligns closely with net income trends, rising overall from 6,265 million in 2020 to a high of 9,612 million in 2023 before slightly declining to 9,447 million in 2024.

Capital expenditures expand consistently year over year, from 1,641 million in 2020 to 2,775 million in 2024, demonstrating substantial ongoing investment. Purchases of restaurant businesses vary, peaking in 2022 and again increasing in 2024. Notably, there is a large recorded purchase of equity method investments in 2024, amounting to 1,837 million, a new and significant outflow. Proceeds from sales of restaurant and other businesses show recoveries each year but fluctuate in magnitude.

Cash used in investing activities increases steadily, indicating growing capital deployment and acquisitions without a corresponding rise in asset sales or divestitures to offset these cash outflows. Financing activities present varied movements. Net short-term borrowings shift from negative in 2020 to positive in recent years, signaling changes in short-term financing stance. Long-term financing issuances spike notably in certain years, particularly 2020 and 2023, while repayments gradually increase, contributing to net financing cash outflows.

Treasury stock purchases indicate significant cash outflows to repurchase shares, especially in 2022 through 2024, while dividend payments steadily rise, reflecting growing returns to shareholders. Proceeds from stock option exercises remain relatively stable each year.

Overall, cash used for financing activities varies widely, with a large cash outflow in 2024 corresponding with intensified treasury stock repurchases and dividends. Effects of exchange rates on cash fluctuate negatively after 2020, impacting cash and equivalents variably.

Consequently, the cash and equivalents balance demonstrates considerable volatility. There is a strong increase in 2021, a substantial decrease in 2022, a recovery in 2023, and a sharp decline by the end of 2024, ending at 1,085 million, significantly down from the prior year. This highlights fluctuating liquidity conditions influenced by operational cash generation, investing commitments, and financing decisions over the period.