Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
McDonald’s Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity profile exhibits significant volatility over the analyzed period, characterized by a peak in late 2023 followed by a notable contraction in 2024 and a subsequent period of stabilization through mid-2026.
- Current Ratio
- The current ratio fluctuated between a high of 1.71 in September 2023 and a low of 0.78 in September 2024. A general upward trend was observed from March 2022 through September 2023, indicating a strengthening ability to cover short-term obligations. However, a sharp decline occurred in early 2024, with the ratio dropping below 1.00, suggesting a period where current liabilities exceeded current assets. From December 2024 through June 2026, the ratio stabilized, oscillating between 0.95 and 1.30.
- Quick Ratio
- The quick ratio closely mirrors the trajectory of the current ratio, peaking at 1.43 in September 2023 and hitting a floor of 0.58 in September 2024. The narrow margin between the current and quick ratios indicates that inventory levels have a minimal impact on overall liquidity. The decline into 2024 highlights a period of reduced liquid asset availability, though a recovery to levels above 0.80 was maintained through the end of the period.
- Cash Ratio
- The cash ratio demonstrates the highest degree of volatility. After reaching a peak of 0.87 in September 2023, a precipitous drop to 0.17 was recorded in March 2024. While a partial recovery occurred by June 2025, reaching 0.44, the ratio remained significantly lower than its 2022-2023 levels. This suggests a strategic shift or a period of increased cash utilization relative to current liabilities starting in 2024.
- Comparative Liquidity Analysis
- A synchronized dip across all three metrics in 2024 indicates a systemic reduction in liquidity rather than a change in asset composition. The convergence of the current and quick ratios suggests a lean inventory model. The consistent gap between the quick ratio and the cash ratio reveals that a substantial portion of liquid assets is held in receivables or other near-cash instruments rather than pure cash reserves.
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Current Ratio
McDonald’s Corp., current ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 4,345) | 4,709) | 4,163) | 6,079) | 5,601) | 4,735) | 4,599) | 4,912) | 4,205) | 4,057) | 7,986) | 6,850) | 4,945) | 6,799) | 5,424) | 5,741) | 4,919) | 4,656) | ||||||
| Current liabilities | 4,018) | 4,146) | 4,361) | 6,079) | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 1.08 | 1.14 | 0.95 | 1.00 | 1.30 | 1.18 | 1.19 | 0.78 | 1.08 | 0.83 | 1.16 | 1.71 | 1.35 | 1.47 | 1.43 | 1.65 | 1.41 | 1.10 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 1.41 | 1.44 | 1.38 | 1.39 | 1.23 | 1.27 | 1.69 | 1.62 | 1.41 | 1.44 | 1.66 | 1.78 | 1.47 | 1.55 | 1.86 | 1.85 | 1.58 | 1.61 | ||||||
| Booking Holdings Inc. | 1.09 | 1.06 | 1.33 | 1.33 | 1.25 | 1.22 | 1.31 | 1.23 | 1.17 | 1.22 | 1.28 | 1.44 | 1.55 | 1.59 | 1.86 | 1.45 | 1.45 | 1.72 | ||||||
| Chipotle Mexican Grill Inc. | 0.72 | 0.92 | 1.23 | 1.54 | 1.65 | 1.52 | 1.52 | 1.62 | 1.71 | 1.65 | 1.57 | 1.53 | 1.58 | 1.41 | 1.28 | 1.32 | 1.26 | 1.32 | ||||||
| DoorDash, Inc. | 1.37 | 1.43 | 1.41 | 2.04 | 2.07 | 1.72 | 1.66 | 1.65 | 1.64 | 1.64 | 1.64 | 1.72 | 1.69 | 1.73 | 1.86 | 2.12 | 2.39 | 2.51 | ||||||
| Starbucks Corp. | 0.92 | 1.05 | 0.72 | 0.76 | 0.64 | 0.75 | 0.75 | 0.89 | 0.86 | 0.70 | 0.78 | 0.78 | 0.77 | 0.75 | 0.77 | 0.84 | 0.83 | 0.81 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,345 ÷ 4,018 = 1.08
2 Click competitor name to see calculations.
The liquidity profile of the entity exhibits significant volatility over the observed period from March 2022 to June 2026, characterized by cyclical fluctuations in both current assets and current liabilities.
- Current Ratio Trajectory
- A period of increasing liquidity is observed from March 2022 through September 2023, during which the current ratio rose from 1.10 to a peak of 1.71. This upward trend indicates a strengthened capacity to meet short-term obligations. However, this peak was followed by a sharp decline, with the ratio falling to 1.16 by December 2023.
- Liquidity Stress and Volatility
- Significant liquidity tightening occurred throughout 2024. The current ratio dropped below the 1.0 threshold in March 2024 (0.83) and reached a period low in September 2024 (0.78). During these intervals, current liabilities exceeded current assets, indicating a temporary reduction in the margin of safety for short-term debt coverage.
- Stabilization Phase
- A recovery trend began in late 2024, with the current ratio returning to 1.19 by December. From January 2025 through June 2026, the ratio demonstrates a pattern of stabilization, generally fluctuating between 0.95 and 1.30. The period concludes with a ratio of 1.08, suggesting a return to a balanced short-term financial position.
- Asset and Liability Dynamics
- The fluctuations in the liquidity ratio are driven by inconsistent movements in the balance sheet components. Current assets reached a maximum of 7,986 million USD in December 2023, coinciding with a spike in current liabilities to 6,859 million USD. Subsequent volatility in 2024 was primarily influenced by current assets falling to approximately 4,057 million USD in March and liabilities rising to 6,308 million USD by September.
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Quick Ratio
McDonald’s Corp., quick ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and equivalents | 822) | 1,170) | 774) | 2,413) | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | ||||||
| Accounts and notes receivable | 2,485) | 2,432) | 2,466) | 2,579) | 2,550) | 2,387) | 2,383) | 2,460) | 2,404) | 2,238) | 2,488) | 2,247) | 2,194) | 2,076) | 2,115) | 1,890) | 1,837) | 1,674) | ||||||
| Total quick assets | 3,307) | 3,602) | 3,240) | 4,992) | 4,426) | 3,625) | 3,468) | 3,681) | 3,196) | 3,076) | 7,067) | 5,743) | 3,819) | 5,784) | 4,699) | 4,718) | 3,709) | 4,010) | ||||||
| Current liabilities | 4,018) | 4,146) | 4,361) | 6,079) | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 0.82 | 0.87 | 0.74 | 0.82 | 1.03 | 0.90 | 0.90 | 0.58 | 0.82 | 0.63 | 1.03 | 1.43 | 1.04 | 1.25 | 1.24 | 1.35 | 1.07 | 0.95 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 1.35 | 1.39 | 1.33 | 1.36 | 1.20 | 1.25 | 1.64 | 1.59 | 1.38 | 1.41 | 1.62 | 1.75 | 1.45 | 1.52 | 1.83 | 1.82 | 1.55 | 1.59 | ||||||
| Booking Holdings Inc. | 1.02 | 0.99 | 1.26 | 1.26 | 1.18 | 1.15 | 1.24 | 1.16 | 1.11 | 1.15 | 1.20 | 1.35 | 1.45 | 1.49 | 1.73 | 1.34 | 1.37 | 1.63 | ||||||
| Chipotle Mexican Grill Inc. | 0.59 | 0.78 | 1.01 | 1.32 | 1.46 | 1.39 | 1.34 | 1.41 | 1.52 | 1.51 | 1.37 | 1.40 | 1.44 | 1.26 | 1.09 | 1.05 | 1.02 | 1.13 | ||||||
| DoorDash, Inc. | 1.10 | 1.14 | 1.12 | 1.80 | 1.83 | 1.49 | 1.41 | 1.36 | 1.35 | 1.35 | 1.35 | 1.42 | 1.41 | 1.43 | 1.54 | 1.87 | 2.14 | 2.23 | ||||||
| Starbucks Corp. | 0.26 | 0.42 | 0.46 | 0.52 | 0.40 | 0.53 | 0.52 | 0.59 | 0.56 | 0.48 | 0.55 | 0.52 | 0.51 | 0.48 | 0.48 | 0.52 | 0.55 | 0.57 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,307 ÷ 4,018 = 0.82
2 Click competitor name to see calculations.
The liquidity profile shows a significant transition from a position of strength and surplus in 2022 and 2023 to a more constrained state from 2024 through mid-2026. While the quick ratio initially trended above 1.0, suggesting a robust ability to meet short-term obligations without relying on inventory, it shifted to a range primarily between 0.6 and 0.9 in the latter half of the observed period.
- Liquidity Strength (March 2022 – December 2023)
- During this period, the quick ratio exhibited a generally positive trend, peaking at 1.43 in September 2023. The organization maintained a liquid asset base that consistently met or exceeded its current liabilities, with a notable peak in total quick assets of 7,067 million US dollars by the end of 2023.
- Liquidity Contraction (January 2024 – December 2024)
- A sharp decline in liquidity occurred in the first quarter of 2024, as the quick ratio dropped to 0.63. This was driven by a substantial reduction in total quick assets, which fell from 7,067 million US dollars in December 2023 to 3,076 million US dollars in March 2024. The ratio reached its lowest point of 0.58 in September 2024, coinciding with a spike in current liabilities to 6,308 million US dollars.
- Stabilization and Fluctuations (January 2025 – June 2026)
- The liquidity ratio began to stabilize but remained predominantly below the 1.0 threshold. A temporary recovery to 1.03 was observed in June 2025, supported by an increase in quick assets to 4,426 million US dollars. However, the ratio declined again to 0.74 by December 2025 and remained at 0.82 as of June 2026, indicating a persistent gap between liquid assets and current liabilities.
- Asset and Liability Dynamics
- The volatility in the quick ratio is attributed to asymmetrical movements between assets and liabilities. Total quick assets exhibited high variance, fluctuating between approximately 3,000 million and 7,000 million US dollars. Current liabilities showed a recurring pattern of expansion during the third and fourth quarters of each year, which placed downward pressure on the quick ratio during those periods.
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Cash Ratio
McDonald’s Corp., cash ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and equivalents | 822) | 1,170) | 774) | 2,413) | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | ||||||
| Total cash assets | 822) | 1,170) | 774) | 2,413) | 1,876) | 1,238) | 1,085) | 1,221) | 792) | 838) | 4,579) | 3,496) | 1,626) | 3,708) | 2,584) | 2,828) | 1,873) | 2,336) | ||||||
| Current liabilities | 4,018) | 4,146) | 4,361) | 6,079) | 4,298) | 4,008) | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 0.20 | 0.28 | 0.18 | 0.40 | 0.44 | 0.31 | 0.28 | 0.19 | 0.20 | 0.17 | 0.67 | 0.87 | 0.44 | 0.80 | 0.68 | 0.81 | 0.54 | 0.55 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 0.67 | 0.73 | 0.81 | 0.83 | 0.60 | 0.69 | 1.04 | 0.99 | 0.71 | 0.78 | 1.01 | 1.12 | 0.76 | 0.87 | 1.21 | 1.20 | 0.88 | 0.95 | ||||||
| Booking Holdings Inc. | 0.82 | 0.81 | 1.03 | 1.02 | 0.94 | 0.95 | 1.03 | 0.95 | 0.90 | 0.95 | 0.95 | 1.08 | 1.22 | 1.31 | 1.46 | 1.07 | 1.15 | 1.41 | ||||||
| Chipotle Mexican Grill Inc. | 0.52 | 0.70 | 0.88 | 1.24 | 1.37 | 1.30 | 1.22 | 1.32 | 1.43 | 1.42 | 1.26 | 1.34 | 1.38 | 1.19 | 0.98 | 0.96 | 0.92 | 1.03 | ||||||
| DoorDash, Inc. | 0.92 | 0.97 | 0.94 | 1.62 | 1.65 | 1.32 | 1.25 | 1.21 | 1.21 | 1.20 | 1.20 | 1.28 | 1.27 | 1.28 | 1.38 | 1.72 | 1.97 | 2.04 | ||||||
| Starbucks Corp. | 0.15 | 0.31 | 0.34 | 0.40 | 0.29 | 0.41 | 0.39 | 0.44 | 0.42 | 0.36 | 0.42 | 0.39 | 0.38 | 0.36 | 0.35 | 0.39 | 0.44 | 0.45 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 822 ÷ 4,018 = 0.20
2 Click competitor name to see calculations.
The analysis of the cash ratio from March 2022 through June 2026 reveals a period of significant fluctuation, characterized by an initial phase of relative liquidity followed by a marked decline and subsequent volatility.
- Initial Liquidity Strength (2022–2023)
- Between March 2022 and December 2023, the cash ratio remained generally robust, fluctuating between 0.44 and 0.87. A peak liquidity position was reached in September 2023, where the ratio hit 0.87. This period was supported by substantial cash reserves, which peaked at 4,579 million US$ in December 2023, indicating a strong capacity to cover short-term obligations using only the most liquid assets.
- Liquidity Contraction (2024)
- A sharp deterioration in the cash ratio is observed beginning in March 2024, when the ratio fell to 0.17. This decline was primarily driven by a substantial reduction in total cash assets, which dropped from 4,579 million US$ in December 2023 to 838 million US$ in March 2024. Throughout the remainder of the 2024 fiscal year, the ratio remained suppressed, failing to exceed 0.28, which signifies a tighter immediate liquidity position.
- Volatile Recovery and Reversion (2025–2026)
- The first half of 2025 exhibited a temporary recovery, with the cash ratio ascending to 0.44 by June 30, 2025, following an increase in cash assets to 1,876 million US$. However, this improvement was transient; by December 31, 2025, the ratio reverted to 0.18. The trend continued into 2026, with the ratio oscillating between 0.18 and 0.28, suggesting that the liquidity profile has not stabilized at pre-2024 levels.
- Correlation between Assets and Liabilities
- The observed movements in the cash ratio are primarily attributed to volatility in total cash assets rather than consistent shifts in current liabilities. While current liabilities reached a peak of 6,859 million US$ in December 2023, the most dramatic ratio declines occurred during periods of significant cash asset depletion, specifically in the first quarter of 2024 and the fourth quarter of 2025.
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