Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

$24.99

Current Ratio
since 2005

Microsoft Excel

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Calculation

McDonald’s Corp., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The analysis of the financial indicators over the observed periods reveals several notable trends related to liquidity and short-term financial health.

Current Assets
Current assets exhibit significant fluctuations, with values ranging from a low of 3,416 million US$ in 2009 to a high of 9,643 million US$ in 2014. The early years show relative stability around 3,500-4,000 million US$, followed by a pronounced spike in 2014, after which the figure generally declines but remains above pre-2014 levels. The years 2020 through 2024 see continued variability, including a strong increase in 2023 to 7,986 million US$, before falling again in 2024.
Current Liabilities
Current liabilities demonstrate a more moderate range of variation, generally between 2,500 and 3,600 million US$ until 2015. However, a substantial peak occurs in 2020 at 6,181 million US$, almost doubling prior levels, suggesting a notable increase in short-term obligations. Following this spike, liabilities decrease but remain elevated relative to earlier periods, with a second peak in 2023 at 6,859 million US$ before dropping again in 2024.
Current Ratio
The current ratio fluctuates between approximately 0.8 and 3.27 across the observed periods, reflecting changing liquidity conditions. Most years show a ratio near or above 1.0, indicating the company generally maintains sufficient current assets to cover current liabilities. Notably, the ratio falls below 1.0 in 2007 (0.8) and 2019 (0.98), pointing to brief periods where short-term liabilities potentially exceeded assets. The highest current ratio is recorded in 2014 at 3.27, coinciding with the peak in current assets, which indicates a particularly strong liquidity position that year. After 2014, the current ratio declines but remains mostly above 1.0, signaling prudent liquidity management despite increased short-term liabilities in certain years.

Overall, the data suggest that the company has experienced fluctuations in short-term financial resources and obligations, with occasional periods of both heightened liquidity and increased leverage. The marked peaks in current assets and liabilities around 2014 and 2020 may warrant further investigation to understand the underlying operational or financing events. The maintenance of a current ratio generally above or near 1.0 indicates an adequate capacity to meet short-term obligations, though close monitoring of years with ratios below 1.0 is advisable to mitigate liquidity risk.


Comparison to Competitors

McDonald’s Corp., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Consumer Services)


Comparison to Industry (Consumer Discretionary)

McDonald’s Corp., current ratio, long-term trends, comparison to industry (consumer discretionary)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).