McDonald’s Corp. (NYSE:MCD)

The analysis of return on assets (ROA) over the observed periods indicates an overall positive trend beginning in early 2020. Initially, data for ROA is missing until March 31, 2020, when it records at 8.99%. Following this, ROA shows a steady increase, reaching a peak of 16% by June 30, 2023. This suggests improving efficiency in asset utilization to generate earnings during this time frame.

After the peak in mid-2023, ROA displays some fluctuations but generally maintains a high level, ranging mostly between 14% and 16%. This stability implies sustained operational performance and asset productivity. For example, by December 31, 2024, ROA remains at 14.09%, which is still significantly higher compared to early 2020 levels.

Financial leverage and return on equity (ROE) data are absent throughout the periods examined, limiting the ability to assess the company’s capital structure impact and shareholder returns comprehensively.

Return on Assets (ROA)

From the first available record at 8.99% in March 2020, ROA progressively increases, peaking at 16% in June 2023. Post-peak, ROA slightly declines but remains comparatively high, indicating strong asset efficiency over the years assessed.

Financial Leverage

Data not available for analysis.

Return on Equity (ROE)

Data not available for analysis.

Net Profit Margin

The Net Profit Margin exhibits a notable upward trend starting from the first recorded value of 24.63% in March 2021. It gradually increases over subsequent quarters, reaching its peak at 33.36% in December 2023. After the peak, the margin stabilizes slightly, fluctuating modestly around the low 30% range with a minor decline to approximately 31.72% in September 2025, and rebounding slightly to 32.21% by the end of the observed period in June 2025. This pattern indicates an overall improvement in profitability relative to revenue over the four-year span, with some stabilization in recent quarters suggesting maturity in profit generation.

Asset Turnover

The Asset Turnover ratio, beginning at 0.36 in March 2021, shows a steady increase in the first two years, reaching 0.48 in September 2022 and maintaining this peak through several subsequent quarters. Thereafter, the ratio shows some variability but generally hovers between 0.44 and 0.48 in the later quarters, indicating a consistent capacity to generate revenue from assets. The slight fluctuations toward the end of the period suggest some variability in operational efficiency, but overall the asset utilization remains stable and relatively strong.

Financial Leverage

Data on Financial Leverage is not provided throughout the observed periods, thus no analysis can be conducted.

Return on Equity (ROE)

Return on Equity (ROE) figures are absent over all time frames, precluding any evaluation of returns generated on shareholder equity.

Tax Burden

The tax burden ratio exhibits a generally stable pattern from March 2021 through June 2025. Values remain consistently around 0.79 to 0.83, indicating minimal volatility and suggesting a steady effective tax rate over the observed quarters.

Interest Burden

This ratio displays a slight upward trend starting near 0.83 in early 2021 and stabilizing around 0.87 to 0.89 from late 2021 onwards. This indicates a modest improvement in the company’s ability to cover interest expenses from operational earnings, with reduced variability in recent quarters.

EBIT Margin

The EBIT margin shows a positive upward trend through the time series. Beginning at around 38.31% in March 2021, it rises to exceed 46% by the end of 2023 and maintains similar levels through mid-2025. This progression suggests improving operational profitability and efficient cost management over the period analyzed.

Asset Turnover

Asset turnover demonstrates a generally increasing trend during the first half of the analyzed period, climbing from 0.36 in March 2021 to approximately 0.48 by late 2022. Subsequent quarters reflect minor fluctuations, maintaining values mostly between 0.44 and 0.48. This indicates sustained efficiency in utilizing assets to generate revenue, with some short-term variability.

Financial Leverage

Data for financial leverage is not provided for any quarter; thus, no analysis can be conducted on this aspect.

Return on Equity (ROE)

No data is available for return on equity across the entire period, precluding trend analysis for this key profitability measure.

Net Profit Margin

The net profit margin data begins from March 31, 2021, showing a clear upward trend initially. Starting at 24.63%, it increased steadily, reaching a peak of 33.36% by December 31, 2023. After this peak, the margin exhibited some fluctuations but maintained a relatively high level above 31%, ending at 32.21% by June 30, 2025. This pattern suggests improved profitability over the observed periods with minor variability in recent quarters.

Asset Turnover

Asset turnover shows a generally increasing trend from March 31, 2021, starting at 0.36 and climbing to 0.48 by the end of 2023. Post-2023, the ratio experiences slight oscillations, mainly between 0.44 and 0.48, indicating relative stability in utilizing assets to generate revenue. The overall increase from 0.36 to around 0.46–0.48 reflects enhanced operational efficiency in asset utilization over time.

Return on Assets (ROA)

Return on assets follows a significant upward trajectory from 8.99% at the beginning of the reporting period in early 2021 to a high of 16.06% at December 31, 2023. Following this peak, the ROA trends slightly downward but remains robust, fluctuating between 14.09% and 16.06% through mid-2025. This indicates improved overall profitability relative to asset base during the early phase, with sustained strong performance in later quarters despite some minor declines.

The analysis of the quarterly financial data reveals several notable trends and patterns in the key performance ratios over the observed periods.

Tax Burden

The tax burden ratio shows a generally stable pattern with slight fluctuations. Starting from around 0.77 in early 2021, the ratio increased modestly to approximately 0.83 by the end of 2021. Following that, it slightly decreased to near 0.78 in 2022, before gradually increasing again to stabilize around 0.79–0.81 between 2023 and mid-2025, indicating consistency in the effective tax rate over time.

Interest Burden

This ratio demonstrates a steady increase from approximately 0.83 in early 2021 to about 0.89 in early 2023. After reaching this high point, it maintains a stable level between 0.87 and 0.89 through to mid-2025. This suggests improved or sustained operational earnings relative to interest expenses during this period.

EBIT Margin

The EBIT margin shows an expanding trend with some volatility. Beginning at 38.31% in the first quarter of 2021, the margin rose significantly, peaking above 46% in several quarters between late 2022 and 2024. Despite minor decreases around mid-2022 and mid-2024, the margin remains high, indicating improved efficiency and profitability from core operations over the examined timeline.

Asset Turnover

Asset turnover exhibits an initial upward trend from 0.36 in early 2021 to a peak near 0.48 during multiple quarters from late 2021 through 2023. Subsequently, the ratio experiences slight declines but remains relatively stable around 0.44 to 0.48 through mid-2025. This pattern denotes consistent utilization of assets in generating revenue, with a slight moderation in efficiency after its peak.

Return on Assets (ROA)

The ROA shows a positive overall trajectory, increasing from 8.99% in early 2021 to a peak near 16% in early to mid-2023. Although there are minor dips following this peak, the ROA remains elevated above 14% throughout 2023 and into 2025. This sustained high ROA reflects strong profitability in relation to the asset base across the periods analyzed.

In summary, the examined ratios collectively indicate improving operational efficiency and profitability over time, with enhanced margins and returns on assets. The interest burden's stability combined with consistent tax burden ratios suggests controlled financial expenses and tax management. Asset utilization reached its highest in the middle of the timeline and maintained solid levels afterward, supporting the overall growth and profitability observed in the EBIT margin and ROA metrics.

The financial data reveals several notable trends across the periods under review, particularly from March 2021 onward where data becomes consistently available.

Tax Burden

The tax burden ratio shows a gradual increase starting at 0.77 in March 2021, rising steadily to around 0.83 by March 2022. Following this peak, the ratio stabilizes with minor fluctuations, consistently hovering around 0.79 to 0.81 through June 2025. This trend suggests a relatively stable yet slightly increasing tax impact on earnings over these periods.

Interest Burden

This ratio exhibits a rising trend initially, moving from 0.83 in March 2021 up to a peak of approximately 0.89 by December 2022 and June 2023. After this, the interest burden slightly declines and levels off at about 0.87 from late 2023 through June 2025. The pattern indicates improved interest cost management or reduced interest expenses relative to operating income over time.

EBIT Margin

The EBIT margin shows a consistent upward trend over the observed quarters. Starting from 38.31% in March 2021, it increases substantially to reach a peak of approximately 46.84% by December 2023. Although there is a slight dip after this peak, the margin remains elevated above 45% through June 2025, reflecting enhanced operating efficiency and profitability at the earnings before interest and taxes level.

Net Profit Margin

The net profit margin follows a similar upward trajectory, beginning at 24.63% in March 2021 and climbing steadily to around 33.36% by December 2023. This strong growth in net profitability indicates effective cost control, margin expansion, or other favorable factors contributing to bottom-line improvements. Although minor decreases occur thereafter, the margin remains robust, maintaining levels above 31.7% through June 2025.

Overall, the analysis points to substantial improvements in profitability margins, supported by stable or slightly improving burden ratios. The trends suggest effective management of operating and financial expenses, contributing to stronger earnings quality over the reviewed timeframe.