Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

McDonald’s Corp., liquidity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 1.16 1.43 1.78 1.01 0.98
Quick ratio 1.03 1.24 1.64 0.90 0.86
Cash ratio 0.67 0.68 1.17 0.56 0.25

Based on: 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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. McDonald’s Corp. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. McDonald’s Corp. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. McDonald’s Corp. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Current Ratio

McDonald’s Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current assets 7,986,400 5,424,200 7,148,500 6,243,200 3,557,900
Current liabilities 6,859,000 3,802,100 4,020,000 6,181,200 3,621,000
Liquidity Ratio
Current ratio1 1.16 1.43 1.78 1.01 0.98
Benchmarks
Current Ratio, Competitors2
Airbnb Inc. 1.66 1.86 1.95 1.73
Booking Holdings Inc. 1.28 1.86 2.10 3.56 1.83
Carnival Corp. & plc 0.46 0.71 0.97 1.22 0.23
Chipotle Mexican Grill Inc. 1.57 1.28 1.58 1.73 1.61
Starbucks Corp. 0.78 0.77 1.20 1.06 0.92
Current Ratio, Sector
Consumer Services 1.07 1.26 1.50 1.49 0.89
Current Ratio, Industry
Consumer Discretionary 1.18 1.14 1.24 1.18 1.08

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,986,400 ÷ 6,859,000 = 1.16

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. McDonald’s Corp. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Quick Ratio

McDonald’s Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Cash and equivalents 4,579,300 2,583,800 4,709,200 3,449,100 898,500
Accounts and notes receivable 2,488,000 2,115,000 1,872,400 2,110,300 2,224,200
Total quick assets 7,067,300 4,698,800 6,581,600 5,559,400 3,122,700
 
Current liabilities 6,859,000 3,802,100 4,020,000 6,181,200 3,621,000
Liquidity Ratio
Quick ratio1 1.03 1.24 1.64 0.90 0.86
Benchmarks
Quick Ratio, Competitors2
Airbnb Inc. 1.63 1.83 1.92 1.70
Booking Holdings Inc. 1.20 1.73 2.00 3.38 1.68
Carnival Corp. & plc 0.26 0.60 0.90 1.13 0.11
Chipotle Mexican Grill Inc. 1.37 1.09 1.35 1.28 1.44
Starbucks Corp. 0.55 0.48 0.93 0.75 0.59
Quick Ratio, Sector
Consumer Services 0.94 1.12 1.37 1.34 0.71
Quick Ratio, Industry
Consumer Discretionary 0.84 0.81 0.92 0.89 0.77

Based on: 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).

1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,067,300 ÷ 6,859,000 = 1.03

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. McDonald’s Corp. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Cash Ratio

McDonald’s Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Cash and equivalents 4,579,300 2,583,800 4,709,200 3,449,100 898,500
Total cash assets 4,579,300 2,583,800 4,709,200 3,449,100 898,500
 
Current liabilities 6,859,000 3,802,100 4,020,000 6,181,200 3,621,000
Liquidity Ratio
Cash ratio1 0.67 0.68 1.17 0.56 0.25
Benchmarks
Cash Ratio, Competitors2
Airbnb Inc. 1.01 1.21 1.31 1.24
Booking Holdings Inc. 0.95 1.46 1.79 3.23 1.36
Carnival Corp. & plc 0.21 0.57 0.88 1.10 0.06
Chipotle Mexican Grill Inc. 1.26 0.98 1.23 1.16 1.32
Starbucks Corp. 0.42 0.35 0.81 0.63 0.45
Cash Ratio, Sector
Consumer Services 0.67 0.85 1.14 1.14 0.50
Cash Ratio, Industry
Consumer Discretionary 0.57 0.55 0.71 0.70 0.56

Based on: 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).

1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,579,300 ÷ 6,859,000 = 0.67

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. McDonald’s Corp. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023.