Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

$24.99

Total Asset Turnover
since 2005

Microsoft Excel

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Calculation

McDonald’s Corp., total asset turnover, 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 provided financial data reveals several noteworthy trends and shifts over the examined period.

Revenues
Revenues experienced a general upward trend from 2005 to 2013, rising from US$20,460 million to a peak of approximately US$28,106 million in 2013. Following this peak, there was a gradual decline until 2018, reaching around US$21,025 million. Revenues then stabilized with minor fluctuations, showing a modest increase from 2019 to 2024, ultimately reaching approximately US$25,920 million in 2024. This pattern indicates a period of growth followed by contraction and subsequent recovery in recent years.
Total assets
Total assets displayed fluctuations but an overall increasing trend over the years. Starting at about US$29,989 million in 2005, total assets showed moderate growth with some variability, reaching a significant rise in 2019 at about US$47,511 million. This upward movement continued into the early 2020s, peaking near US$56,147 million in 2023 before a slight dip to US$55,182 million in 2024. The growth in total assets suggests ongoing investment or acquisition activity contributing to the company's asset base expansion.
Total asset turnover
The total asset turnover ratio, which measures the efficiency of the company in using its assets to generate revenue, exhibited a declining trend over the period. Beginning at 0.68 in 2005, it improved gradually to a peak around 0.83 in 2008, indicating improved efficiency at that time. However, post-2008, the ratio showed a general decline with intermittent fluctuations, dropping to as low as 0.36 in 2020. This downward trend suggests that while total assets increased, they were not as effectively leveraged to generate revenue as in earlier years. A slight recovery in asset turnover is observed in the subsequent years, reaching 0.47 by 2024 but still remaining below earlier peaks.

In summary, revenues and total assets have both grown over the long term, with revenues showing some volatility and recent recovery. The decreasing trend in asset turnover ratio indicates diminished efficiency in utilizing assets to produce revenues, which could warrant further investigation into operational efficiency or changes in asset composition.


Comparison to Competitors

McDonald’s Corp., total asset turnover, 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., total asset turnover, 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).