Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Solvency Ratios
Quarterly Data

Beginner level

Solvency Ratios (Summary)

McDonald’s Corp., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Debt Ratios
Debt to equity 40.64 6.05 3.40 2.16 1.70 1.25
Debt to equity (including operating lease liability) 40.64 6.05 3.40 2.16 1.70 1.25
Debt to capital 1.29 1.32 1.31 1.32 1.35 1.26 1.25 1.25 1.27 1.23 1.18 1.12 1.14 1.08 1.08 1.09 1.07 0.98 0.86 0.77 0.68 0.63 0.56
Debt to capital (including operating lease liability) 1.20 1.22 1.22 1.21 1.23 1.18 1.17 1.25 1.27 1.23 1.18 1.12 1.14 1.08 1.08 1.09 1.07 0.98 0.86 0.77 0.68 0.63 0.56
Debt to assets 0.75 0.78 0.77 0.72 0.72 0.71 0.71 0.95 0.94 0.95 0.92 0.87 0.88 0.87 0.85 0.84 0.80 0.78 0.69 0.64 0.55 0.51 0.44
Debt to assets (including operating lease liability) 1.01 1.04 1.03 1.00 0.99 0.98 0.97 0.95 0.94 0.95 0.92 0.87 0.88 0.87 0.85 0.84 0.80 0.78 0.69 0.64 0.55 0.51 0.44
Financial leverage 51.79 8.75 5.35 3.97 3.31 2.82
Coverage Ratios
Interest coverage 6.32 6.39 7.77 8.15 8.08 8.29 8.62 8.97 9.26 10.08 10.21 10.31 10.28 9.42 9.02 8.76 9.10 9.69 10.70 11.27

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.
Debt to equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. McDonald’s Corp.’s debt to capital ratio deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
Debt to capital (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. McDonald’s Corp.’s debt to capital ratio (including operating lease liability) deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. McDonald’s Corp.’s debt to assets ratio deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. McDonald’s Corp.’s debt to assets ratio (including operating lease liability) deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. McDonald’s Corp.’s interest coverage ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Debt to Equity

McDonald’s Corp., debt to equity calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
 
Shareholders’ equity (deficit) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Solvency Ratio
Debt to equity1 40.64 6.05 3.40 2.16 1.70 1.25
Benchmarks
Debt to Equity, Competitors2
Booking Holdings Inc. 2.40 2.90 2.23 1.45 1.43 1.63 1.24 0.98 0.87 0.83 0.84 0.85 0.75 0.73 0.76 0.73 0.75 0.78 0.70 0.70 0.64 0.63 0.61
Starbucks Corp. 8.07 1.70 1.39 0.85 0.72 0.67 0.71 0.55 0.61 0.63 0.59 0.39 0.40 0.49 0.34 0.35

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).

1 Q3 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 37,832,200 ÷ -8,472,100 =

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.

Debt to Equity (including Operating Lease Liability)

McDonald’s Corp., debt to equity (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Current lease liability 718,200  681,200  688,600  621,000  703,300  743,400  767,900  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Long-term lease liability 12,736,000  12,478,900  12,470,300  12,757,800  11,881,800  11,895,400  11,629,500  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 51,286,400  51,922,300  52,311,500  47,556,000  45,435,200  45,293,100  45,289,400  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
 
Shareholders’ equity (deficit) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Solvency Ratio
Debt to equity (including operating lease liability)1 40.64 6.05 3.40 2.16 1.70 1.25
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Booking Holdings Inc. 2.49 3.01 2.35 1.53 1.51 1.73 1.31 0.98 0.87 0.83 0.84 0.85 0.75 0.73 0.76 0.73 0.75 0.78 0.70 0.70 0.64 0.63 0.61
Starbucks Corp. 8.07 1.70 1.39 0.85 0.72 0.67 0.71 0.55 0.61 0.63 0.59 0.39 0.40 0.49 0.34 0.35

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).

1 Q3 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 51,286,400 ÷ -8,472,100 =

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.

Debt to Capital

McDonald’s Corp., debt to capital calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Shareholders’ equity (deficit) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Total capital 29,360,100  29,299,100  29,859,200  25,966,900  24,250,900  25,845,500  26,341,100  24,816,900  25,102,600  25,128,900  26,150,700  26,268,400  25,140,800  26,360,200  25,176,300  23,751,400  24,382,900  26,650,000  27,215,600  31,210,000  26,300,300  28,462,500  25,695,100 
Solvency Ratio
Debt to capital1 1.29 1.32 1.31 1.32 1.35 1.26 1.25 1.25 1.27 1.23 1.18 1.12 1.14 1.08 1.08 1.09 1.07 0.98 0.86 0.77 0.68 0.63 0.56
Benchmarks
Debt to Capital, Competitors2
Booking Holdings Inc. 0.71 0.74 0.69 0.59 0.59 0.62 0.55 0.50 0.47 0.45 0.46 0.46 0.43 0.42 0.43 0.42 0.43 0.44 0.41 0.41 0.39 0.39 0.38
Starbucks Corp. 2.05 2.16 2.38 2.26 1.63 2.21 1.46 0.89 0.63 0.58 0.46 0.42 0.40 0.41 0.35 0.38 0.39 0.37 0.28 0.29 0.33 0.25 0.26

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).

1 Q3 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,832,200 ÷ 29,360,100 = 1.29

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. McDonald’s Corp.’s debt to capital ratio deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Debt to Capital (including Operating Lease Liability)

McDonald’s Corp., debt to capital (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Current lease liability 718,200  681,200  688,600  621,000  703,300  743,400  767,900  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Long-term lease liability 12,736,000  12,478,900  12,470,300  12,757,800  11,881,800  11,895,400  11,629,500  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 51,286,400  51,922,300  52,311,500  47,556,000  45,435,200  45,293,100  45,289,400  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Shareholders’ equity (deficit) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Total capital (including operating lease liability) 42,814,300  42,459,200  43,018,100  39,345,700  36,836,000  38,484,300  38,738,500  24,816,900  25,102,600  25,128,900  26,150,700  26,268,400  25,140,800  26,360,200  25,176,300  23,751,400  24,382,900  26,650,000  27,215,600  31,210,000  26,300,300  28,462,500  25,695,100 
Solvency Ratio
Debt to capital (including operating lease liability)1 1.20 1.22 1.22 1.21 1.23 1.18 1.17 1.25 1.27 1.23 1.18 1.12 1.14 1.08 1.08 1.09 1.07 0.98 0.86 0.77 0.68 0.63 0.56
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Booking Holdings Inc. 0.71 0.75 0.70 0.61 0.60 0.63 0.57 0.50 0.47 0.45 0.46 0.46 0.43 0.42 0.43 0.42 0.43 0.44 0.41 0.41 0.39 0.39 0.38
Starbucks Corp. 1.50 1.49 1.49 2.26 1.63 2.21 1.46 0.89 0.63 0.58 0.46 0.42 0.40 0.41 0.35 0.38 0.39 0.37 0.28 0.29 0.33 0.25 0.26

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).

1 Q3 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 51,286,400 ÷ 42,814,300 = 1.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. McDonald’s Corp.’s debt to capital ratio (including operating lease liability) deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Debt to Assets

McDonald’s Corp., debt to assets calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
 
Total assets 50,699,300  49,938,900  50,568,000  47,510,800  45,805,000  46,199,800  46,466,600  32,811,200  34,053,700  32,708,400  33,722,900  33,803,700  32,559,600  32,785,200  32,120,300  31,023,900  32,486,900  33,146,500  33,795,400  37,938,700  32,959,500  34,947,900  32,155,600 
Solvency Ratio
Debt to assets1 0.75 0.78 0.77 0.72 0.72 0.71 0.71 0.95 0.94 0.95 0.92 0.87 0.88 0.87 0.85 0.84 0.80 0.78 0.69 0.64 0.55 0.51 0.44
Benchmarks
Debt to Assets, Competitors2
Booking Holdings Inc. 0.53 0.55 0.48 0.40 0.40 0.40 0.38 0.38 0.36 0.34 0.36 0.37 0.37 0.36 0.38 0.36 0.36 0.37 0.34 0.35 0.33 0.32 0.31
Starbucks Corp. 0.58 0.51 0.42 0.58 0.53 0.52 0.46 0.39 0.40 0.37 0.27 0.27 0.27 0.28 0.23 0.25 0.26 0.24 0.18 0.19 0.23 0.17 0.17

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).

1 Q3 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,832,200 ÷ 50,699,300 = 0.75

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. McDonald’s Corp.’s debt to assets ratio deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Debt to Assets (including Operating Lease Liability)

McDonald’s Corp., debt to assets (including operating lease liability) calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Short-term borrowings —  1,000,000  1,000,000  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Current maturities of long-term debt 2,688,800  3,086,600  106,000  59,100  —  —  —  —  —  292,200  —  —  215,800  209,900  222,900  77,200  —  —  —  —  —  —  — 
Long-term debt, excluding current maturities 35,143,400  34,675,600  38,046,600  34,118,100  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,687,700  30,869,500  29,536,400  28,402,600  28,150,900  26,984,200  25,878,500  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Total debt 37,832,200  38,762,200  39,152,600  34,177,200  32,850,100  32,654,300  32,892,000  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
Current lease liability 718,200  681,200  688,600  621,000  703,300  743,400  767,900  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Long-term lease liability 12,736,000  12,478,900  12,470,300  12,757,800  11,881,800  11,895,400  11,629,500  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Total debt (including operating lease liability) 51,286,400  51,922,300  52,311,500  47,556,000  45,435,200  45,293,100  45,289,400  31,075,300  31,895,200  30,979,900  30,869,500  29,536,400  28,618,400  28,360,800  27,207,100  25,955,700  26,007,000  26,010,000  23,352,600  24,122,100  17,990,500  17,901,600  14,291,800 
 
Total assets 50,699,300  49,938,900  50,568,000  47,510,800  45,805,000  46,199,800  46,466,600  32,811,200  34,053,700  32,708,400  33,722,900  33,803,700  32,559,600  32,785,200  32,120,300  31,023,900  32,486,900  33,146,500  33,795,400  37,938,700  32,959,500  34,947,900  32,155,600 
Solvency Ratio
Debt to assets (including operating lease liability)1 1.01 1.04 1.03 1.00 0.99 0.98 0.97 0.95 0.94 0.95 0.92 0.87 0.88 0.87 0.85 0.84 0.80 0.78 0.69 0.64 0.55 0.51 0.44
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Booking Holdings Inc. 0.55 0.57 0.50 0.42 0.42 0.43 0.41 0.38 0.36 0.34 0.36 0.37 0.37 0.36 0.38 0.36 0.36 0.37 0.34 0.35 0.33 0.32 0.31
Starbucks Corp. 0.88 0.83 0.74 0.58 0.53 0.52 0.46 0.39 0.40 0.37 0.27 0.27 0.27 0.28 0.23 0.25 0.26 0.24 0.18 0.19 0.23 0.17 0.17

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).

1 Q3 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 51,286,400 ÷ 50,699,300 = 1.01

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. McDonald’s Corp.’s debt to assets ratio (including operating lease liability) deteriorated from Q1 2020 to Q2 2020 but then improved from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Financial Leverage

McDonald’s Corp., financial leverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Total assets 50,699,300  49,938,900  50,568,000  47,510,800  45,805,000  46,199,800  46,466,600  32,811,200  34,053,700  32,708,400  33,722,900  33,803,700  32,559,600  32,785,200  32,120,300  31,023,900  32,486,900  33,146,500  33,795,400  37,938,700  32,959,500  34,947,900  32,155,600 
Shareholders’ equity (deficit) (8,472,100) (9,463,100) (9,293,400) (8,210,300) (8,599,200) (6,808,800) (6,550,900) (6,258,400) (6,792,600) (5,851,000) (4,718,800) (3,268,000) (3,477,600) (2,000,600) (2,030,800) (2,204,300) (1,624,100) 640,000  3,863,000  7,087,900  8,309,800  10,560,900  11,403,300 
Solvency Ratio
Financial leverage1 51.79 8.75 5.35 3.97 3.31 2.82
Benchmarks
Financial Leverage, Competitors2
Booking Holdings Inc. 4.51 5.23 4.66 3.61 3.60 4.05 3.23 2.58 2.45 2.42 2.35 2.26 2.00 2.02 2.03 2.02 2.04 2.12 2.03 1.98 1.95 1.99 1.95
Starbucks Corp. 20.66 4.31 3.73 3.22 2.64 2.49 2.54 2.42 2.44 2.42 2.46 2.16 2.14 2.20 2.03 2.14

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).

1 Q3 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 50,699,300 ÷ -8,472,100 =

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity.

Interest Coverage

McDonald’s Corp., interest coverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Net income 1,762,600  483,800  1,106,900  1,572,200  1,607,900  1,516,900  1,328,400  1,415,300  1,637,300  1,496,300  1,375,400  698,700  1,883,700  1,395,100  1,214,800  1,193,400  1,275,400  1,092,900  1,124,800  1,206,200  1,309,200  1,202,400  811,500 
Add: Income tax expense 454,500  164,900  338,000  454,600  544,300  490,900  502,900  336,100  521,400  521,800  512,500  1,186,400  935,800  666,300  592,700  541,500  629,100  557,300  451,600  504,600  569,200  510,000  442,600 
Add: Interest expense 310,100  319,100  280,000  283,000  280,600  284,200  274,100  254,100  250,100  240,200  236,800  235,100  236,700  230,900  218,600  221,200  221,400  223,900  218,300  180,900  160,900  149,200  147,300 
Earnings before interest and tax (EBIT) 2,527,200  967,800  1,724,900  2,309,800  2,432,800  2,292,000  2,105,400  2,005,500  2,408,800  2,258,300  2,124,700  2,120,200  3,056,200  2,292,300  2,026,100  1,956,100  2,125,900  1,874,100  1,794,700  1,891,700  2,039,300  1,861,600  1,401,400 
Solvency Ratio
Interest coverage1 6.32 6.39 7.77 8.15 8.08 8.29 8.62 8.97 9.26 10.08 10.21 10.31 10.28 9.42 9.02 8.76 9.10 9.69 10.70 11.27
Benchmarks
Interest Coverage, Competitors2
Booking Holdings Inc. 6.44 12.20 17.17 23.40 20.16 19.84 20.07 18.97 19.76 19.25 18.22 18.32 18.71 13.98 13.83 14.05 14.07 18.69 19.32 20.52
Starbucks Corp. 5.23 12.29 14.35 14.49 15.69 15.50 18.04 34.94 47.62 57.42 66.44 47.68 47.16 48.23 49.33 52.64 52.87 53.03 52.67 56.36

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).

1 Q3 2020 Calculation
Interest coverage = (EBITQ3 2020 + EBITQ2 2020 + EBITQ1 2020 + EBITQ4 2019) ÷ (Interest expenseQ3 2020 + Interest expenseQ2 2020 + Interest expenseQ1 2020 + Interest expenseQ4 2019)
= (2,527,200 + 967,800 + 1,724,900 + 2,309,800) ÷ (310,100 + 319,100 + 280,000 + 283,000) = 6.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. McDonald’s Corp.’s interest coverage ratio deteriorated from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.