Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Two-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 30, 2020 = 9.72% ×
Jun 30, 2020 = 9.55% ×
Mar 31, 2020 = 11.48% ×
Dec 31, 2019 = 12.68% ×
Sep 30, 2019 = 12.81% ×
Jun 30, 2019 = 12.77% ×
Mar 31, 2019 = 12.65% ×
Dec 31, 2018 = 18.06% ×
Sep 30, 2018 = 15.29% ×
Jun 30, 2018 = 16.67% ×
Mar 31, 2018 = 15.87% ×
Dec 31, 2017 = 15.36% ×
Sep 30, 2017 = 17.47% ×
Jun 30, 2017 = 15.49% ×
Mar 31, 2017 = 14.87% ×
Dec 31, 2016 = 15.11% ×
Sep 30, 2016 = 14.47% ×
Jun 30, 2016 739.55% = 14.28% × 51.79
Mar 31, 2016 125.36% = 14.33% × 8.75
Dec 31, 2015 63.90% = 11.94% × 5.35
Sep 30, 2015 = × 3.97
Jun 30, 2015 = × 3.31
Mar 31, 2015 = × 2.82

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).


Three-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 = 25.60% × 0.38 ×
Jun 30, 2020 = 24.78% × 0.39 ×
Mar 31, 2020 = 27.86% × 0.41 ×
Dec 31, 2019 = 28.59% × 0.44 ×
Sep 30, 2019 = 28.09% × 0.46 ×
Jun 30, 2019 = 28.32% × 0.45 ×
Mar 31, 2019 = 28.20% × 0.45 ×
Dec 31, 2018 = 28.18% × 0.64 ×
Sep 30, 2018 = 24.56% × 0.62 ×
Jun 30, 2018 = 25.26% × 0.66 ×
Mar 31, 2018 = 24.02% × 0.66 ×
Dec 31, 2017 = 22.75% × 0.68 ×
Sep 30, 2017 = 24.19% × 0.72 ×
Jun 30, 2017 = 21.00% × 0.74 ×
Mar 31, 2017 = 19.58% × 0.76 ×
Dec 31, 2016 = 19.03% × 0.79 ×
Sep 30, 2016 = 18.85% × 0.77 ×
Jun 30, 2016 739.55% = 18.84% × 0.76 × 51.79
Mar 31, 2016 125.36% = 19.10% × 0.75 × 8.75
Dec 31, 2015 63.90% = 17.82% × 0.67 × 5.35
Sep 30, 2015 = × × 3.97
Jun 30, 2015 = × × 3.31
Mar 31, 2015 = × × 2.82

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).


Five-Component Disaggregation of ROE

McDonald’s Corp., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2020 = 0.78 × 0.84 × 39.13% × 0.38 ×
Jun 30, 2020 = 0.76 × 0.84 × 38.61% × 0.39 ×
Mar 31, 2020 = 0.76 × 0.87 × 42.04% × 0.41 ×
Dec 31, 2019 = 0.75 × 0.88 × 43.37% × 0.44 ×
Sep 30, 2019 = 0.76 × 0.88 × 42.30% × 0.46 ×
Jun 30, 2019 = 0.76 × 0.88 × 42.30% × 0.45 ×
Mar 31, 2019 = 0.76 × 0.88 × 42.12% × 0.45 ×
Dec 31, 2018 = 0.76 × 0.89 × 41.84% × 0.64 ×
Sep 30, 2018 = 0.66 × 0.89 × 42.03% × 0.62 ×
Jun 30, 2018 = 0.63 × 0.90 × 44.28% × 0.66 ×
Mar 31, 2018 = 0.62 × 0.90 × 43.05% × 0.66 ×
Dec 31, 2017 = 0.61 × 0.90 × 41.61% × 0.68 ×
Sep 30, 2017 = 0.68 × 0.90 × 39.69% × 0.72 ×
Jun 30, 2017 = 0.68 × 0.89 × 34.74% × 0.74 ×
Mar 31, 2017 = 0.67 × 0.89 × 32.72% × 0.76 ×
Dec 31, 2016 = 0.68 × 0.89 × 31.48% × 0.79 ×
Sep 30, 2016 = 0.69 × 0.89 × 30.83% × 0.77 ×
Jun 30, 2016 739.55% = 0.69 × 0.90 × 30.25% × 0.76 × 51.79
Mar 31, 2016 125.36% = 0.70 × 0.91 × 29.92% × 0.75 × 8.75
Dec 31, 2015 63.90% = 0.69 × 0.91 × 28.31% × 0.67 × 5.35
Sep 30, 2015 = × × × × 3.97
Jun 30, 2015 = × × × × 3.31
Mar 31, 2015 = × × × × 2.82

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).


Two-Component Disaggregation of ROA

McDonald’s Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2020 9.72% = 25.60% × 0.38
Jun 30, 2020 9.55% = 24.78% × 0.39
Mar 31, 2020 11.48% = 27.86% × 0.41
Dec 31, 2019 12.68% = 28.59% × 0.44
Sep 30, 2019 12.81% = 28.09% × 0.46
Jun 30, 2019 12.77% = 28.32% × 0.45
Mar 31, 2019 12.65% = 28.20% × 0.45
Dec 31, 2018 18.06% = 28.18% × 0.64
Sep 30, 2018 15.29% = 24.56% × 0.62
Jun 30, 2018 16.67% = 25.26% × 0.66
Mar 31, 2018 15.87% = 24.02% × 0.66
Dec 31, 2017 15.36% = 22.75% × 0.68
Sep 30, 2017 17.47% = 24.19% × 0.72
Jun 30, 2017 15.49% = 21.00% × 0.74
Mar 31, 2017 14.87% = 19.58% × 0.76
Dec 31, 2016 15.11% = 19.03% × 0.79
Sep 30, 2016 14.47% = 18.85% × 0.77
Jun 30, 2016 14.28% = 18.84% × 0.76
Mar 31, 2016 14.33% = 19.10% × 0.75
Dec 31, 2015 11.94% = 17.82% × 0.67
Sep 30, 2015 = ×
Jun 30, 2015 = ×
Mar 31, 2015 = ×

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

McDonald’s Corp., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2020 9.72% = 0.78 × 0.84 × 39.13% × 0.38
Jun 30, 2020 9.55% = 0.76 × 0.84 × 38.61% × 0.39
Mar 31, 2020 11.48% = 0.76 × 0.87 × 42.04% × 0.41
Dec 31, 2019 12.68% = 0.75 × 0.88 × 43.37% × 0.44
Sep 30, 2019 12.81% = 0.76 × 0.88 × 42.30% × 0.46
Jun 30, 2019 12.77% = 0.76 × 0.88 × 42.30% × 0.45
Mar 31, 2019 12.65% = 0.76 × 0.88 × 42.12% × 0.45
Dec 31, 2018 18.06% = 0.76 × 0.89 × 41.84% × 0.64
Sep 30, 2018 15.29% = 0.66 × 0.89 × 42.03% × 0.62
Jun 30, 2018 16.67% = 0.63 × 0.90 × 44.28% × 0.66
Mar 31, 2018 15.87% = 0.62 × 0.90 × 43.05% × 0.66
Dec 31, 2017 15.36% = 0.61 × 0.90 × 41.61% × 0.68
Sep 30, 2017 17.47% = 0.68 × 0.90 × 39.69% × 0.72
Jun 30, 2017 15.49% = 0.68 × 0.89 × 34.74% × 0.74
Mar 31, 2017 14.87% = 0.67 × 0.89 × 32.72% × 0.76
Dec 31, 2016 15.11% = 0.68 × 0.89 × 31.48% × 0.79
Sep 30, 2016 14.47% = 0.69 × 0.89 × 30.83% × 0.77
Jun 30, 2016 14.28% = 0.69 × 0.90 × 30.25% × 0.76
Mar 31, 2016 14.33% = 0.70 × 0.91 × 29.92% × 0.75
Dec 31, 2015 11.94% = 0.69 × 0.91 × 28.31% × 0.67
Sep 30, 2015 = × × ×
Jun 30, 2015 = × × ×
Mar 31, 2015 = × × ×

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in effect of taxes measured by tax burden ratio.


Disaggregation of Net Profit Margin

McDonald’s Corp., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2020 25.60% = 0.78 × 0.84 × 39.13%
Jun 30, 2020 24.78% = 0.76 × 0.84 × 38.61%
Mar 31, 2020 27.86% = 0.76 × 0.87 × 42.04%
Dec 31, 2019 28.59% = 0.75 × 0.88 × 43.37%
Sep 30, 2019 28.09% = 0.76 × 0.88 × 42.30%
Jun 30, 2019 28.32% = 0.76 × 0.88 × 42.30%
Mar 31, 2019 28.20% = 0.76 × 0.88 × 42.12%
Dec 31, 2018 28.18% = 0.76 × 0.89 × 41.84%
Sep 30, 2018 24.56% = 0.66 × 0.89 × 42.03%
Jun 30, 2018 25.26% = 0.63 × 0.90 × 44.28%
Mar 31, 2018 24.02% = 0.62 × 0.90 × 43.05%
Dec 31, 2017 22.75% = 0.61 × 0.90 × 41.61%
Sep 30, 2017 24.19% = 0.68 × 0.90 × 39.69%
Jun 30, 2017 21.00% = 0.68 × 0.89 × 34.74%
Mar 31, 2017 19.58% = 0.67 × 0.89 × 32.72%
Dec 31, 2016 19.03% = 0.68 × 0.89 × 31.48%
Sep 30, 2016 18.85% = 0.69 × 0.89 × 30.83%
Jun 30, 2016 18.84% = 0.69 × 0.90 × 30.25%
Mar 31, 2016 19.10% = 0.70 × 0.91 × 29.92%
Dec 31, 2015 17.82% = 0.69 × 0.91 × 28.31%
Sep 30, 2015 = × ×
Jun 30, 2015 = × ×
Mar 31, 2015 = × ×

Based on: 10-Q (filing date: 2020-11-09), 10-Q (filing date: 2020-08-10), 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07).

The primary reason for the increase in net profit margin ratio over Q3 2020 is the increase in effect of taxes measured by tax burden ratio.