Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
McDonald’s Corp., solvency 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 solvency profile exhibits a gradual reduction in leverage and a consistent ability to service interest obligations over the analyzed period. A long-term downward trend in capital leverage is paired with stable asset-backed debt levels and robust interest coverage.
- Debt to Capital Ratio
- A consistent downward trajectory is observed in the debt to capital ratio, which declined from a peak of 1.23 in mid-2022 to 1.03 by June 2026. This steady decrease indicates a strategic shift toward a more balanced capital structure, reducing the reliance on borrowed funds relative to total capital.
- Debt to Assets Ratio
- The debt to assets ratio remained relatively stable, fluctuating within a narrow corridor between 0.67 and 0.72. While there were minor peaks in September 2022, September 2023, and June 2024, the ratio returned to its baseline of 0.67 by the end of the period, suggesting that debt growth has remained proportional to asset growth.
- Interest Coverage Ratio
- Interest coverage remained robust throughout the period, ensuring that operating earnings comfortably exceed interest expenses. Following a dip to 7.44 in September 2022, the ratio peaked at 8.82 in September 2023 before stabilizing within the 7.80 to 7.95 range from December 2023 through June 2026. This stability indicates a sustained capacity to meet financial obligations despite fluctuations in operational performance.
Overall, the financial data suggests a strengthening solvency position characterized by a decreasing debt-to-capital reliance and a stable asset-to-debt relationship, supported by a strong and consistent capacity to cover interest payments.
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Debt Ratios
Coverage Ratios
Debt to Equity
McDonald’s Corp., debt to equity 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) | ||||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | —) | —) | —) | 1,800) | 602) | 80) | —) | 596) | —) | 604) | 2,192) | —) | —) | 524) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 39,863) | 40,105) | 39,973) | 39,483) | 40,801) | 38,845) | 38,424) | 38,990) | 38,524) | 36,764) | 37,153) | 37,275) | 35,710) | 36,604) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Total debt | 39,863) | 40,105) | 39,973) | 41,283) | 41,403) | 38,925) | 38,424) | 39,586) | 38,524) | 37,368) | 39,345) | 37,275) | 35,710) | 37,128) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Shareholders’ deficit | (1,023) | (1,286) | (1,791) | (2,163) | (2,760) | (3,454) | (3,797) | (5,177) | (4,824) | (4,833) | (4,707) | (4,855) | (4,999) | (5,776) | (6,003) | (6,566) | (6,370) | (5,991) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 0.32 | 0.32 | 0.24 | 0.23 | 0.26 | 0.25 | 0.24 | 0.23 | 0.25 | 0.25 | 0.24 | 0.22 | 0.39 | 0.38 | 0.36 | 0.36 | 0.38 | 0.42 | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | 11.29 | 4.49 | 2.50 | 2.37 | 2.23 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.27 | 0.27 | 0.27 | 0.29 | 0.30 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
Debt to equity = Total debt ÷ Shareholders’ deficit
= 39,863 ÷ -1,023 = —
2 Click competitor name to see calculations.
The financial trajectory from March 2022 through June 2026 is characterized by an expansion of total liabilities coupled with a consistent reduction in the shareholders' deficit. The capital structure remains highly leveraged, as total equity remains negative throughout the analyzed period, though it demonstrates a steady trend toward recovery.
- Total Debt Trends
- Total debt exhibited a general upward trajectory for the majority of the period, rising from 33,989 million US$ in March 2022 to a peak of 41,403 million US$ in June 2025. Following this peak, a slight contraction is observed, with debt levels moderating to 39,863 million US$ by June 2026. This suggests a period of aggressive borrowing or debt issuance that stabilized in the latter part of the forecast.
- Shareholders' Deficit Analysis
- The shareholders' equity position remained negative throughout the duration of the analysis, indicating that total liabilities exceeded total assets. However, a strong recovery trend is evident. After reaching a maximum deficit of 6,370 million US$ in June 2022, the deficit narrowed consistently. By June 2026, the deficit was reduced to 1,023 million US$, representing a significant improvement in the net asset position.
- Solvency and Leverage Implications
- The Debt to Equity relationship is characterized by a negative ratio due to the deficit in shareholders' equity. While the absolute amount of debt increased, the simultaneous and substantial reduction of the deficit suggests a strategic shift toward improving the balance sheet. The narrowing of the deficit from 6,370 million US$ to 1,023 million US$ indicates a reduction in the gap between liabilities and assets, despite the maintenance of high total debt levels.
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Debt to Capital
McDonald’s Corp., debt to capital 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) | ||||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | —) | —) | —) | 1,800) | 602) | 80) | —) | 596) | —) | 604) | 2,192) | —) | —) | 524) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 39,863) | 40,105) | 39,973) | 39,483) | 40,801) | 38,845) | 38,424) | 38,990) | 38,524) | 36,764) | 37,153) | 37,275) | 35,710) | 36,604) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Total debt | 39,863) | 40,105) | 39,973) | 41,283) | 41,403) | 38,925) | 38,424) | 39,586) | 38,524) | 37,368) | 39,345) | 37,275) | 35,710) | 37,128) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Shareholders’ deficit | (1,023) | (1,286) | (1,791) | (2,163) | (2,760) | (3,454) | (3,797) | (5,177) | (4,824) | (4,833) | (4,707) | (4,855) | (4,999) | (5,776) | (6,003) | (6,566) | (6,370) | (5,991) | ||||||
| Total capital | 38,840) | 38,819) | 38,182) | 39,120) | 38,643) | 35,471) | 34,627) | 34,409) | 33,700) | 32,535) | 34,639) | 32,420) | 30,711) | 31,352) | 29,900) | 28,300) | 28,207) | 27,998) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 1.03 | 1.03 | 1.05 | 1.06 | 1.07 | 1.10 | 1.11 | 1.15 | 1.14 | 1.15 | 1.14 | 1.15 | 1.16 | 1.18 | 1.20 | 1.23 | 1.23 | 1.21 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 0.24 | 0.24 | 0.20 | 0.19 | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.18 | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | 0.30 | ||||||
| Booking Holdings Inc. | 2.15 | 1.90 | 1.42 | 1.39 | 1.56 | 1.62 | 1.32 | 1.29 | 1.34 | 1.32 | 1.24 | 1.05 | 1.05 | 0.92 | 0.82 | 0.71 | 0.70 | 0.69 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.22 | 0.21 | 0.21 | 0.22 | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Starbucks Corp. | 2.28 | 2.09 | 2.01 | 1.80 | 1.96 | 1.92 | 1.92 | 2.04 | 2.18 | 2.35 | 2.08 | 2.18 | 2.22 | 2.39 | 2.37 | 2.34 | 2.21 | 2.34 | ||||||
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
Debt to capital = Total debt ÷ Total capital
= 39,863 ÷ 38,840 = 1.03
2 Click competitor name to see calculations.
The solvency profile exhibits a gradual improvement in the debt-to-capital ratio over the analyzed period, despite an overall increase in absolute debt obligations. The transition from a ratio of 1.21 in early 2022 to 1.03 by mid-2026 indicates a strengthening of the capital structure relative to total debt.
- Total Debt Trajectory
- Total debt increased from 33,989 million USD in March 2022 to 39,863 million USD in June 2026. The growth was characterized by a steady rise through 2023 and 2024, reaching a peak of 41,403 million USD in June 2025 before experiencing a slight contraction and stabilizing in the 39,000 to 40,000 million USD range.
- Total Capital Growth
- Total capital experienced significant expansion, rising from 27,998 million USD in March 2022 to 38,840 million USD in June 2026. This growth trend was more consistent and pronounced than the increase in debt, particularly during the period between December 2023 and June 2025, where capital levels grew by approximately 12%.
- Debt to Capital Ratio Analysis
- A consistent downward trend is observed in the debt-to-capital ratio following a peak of 1.23 in the second and third quarters of 2022. The ratio declined incrementally, breaking below the 1.10 threshold in December 2024 and continuing to decrease to 1.03 by June 2026. This decompression indicates that capital accumulation outperformed debt accumulation, effectively reducing the proportional reliance on borrowed funds within the total capital structure.
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Debt to Assets
McDonald’s Corp., debt to assets 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) | ||||||||||||||||||||||||
| Short-term borrowings and current maturities of long-term debt | —) | —) | —) | 1,800) | 602) | 80) | —) | 596) | —) | 604) | 2,192) | —) | —) | 524) | —) | —) | —) | —) | ||||||
| Long-term debt, excluding current maturities | 39,863) | 40,105) | 39,973) | 39,483) | 40,801) | 38,845) | 38,424) | 38,990) | 38,524) | 36,764) | 37,153) | 37,275) | 35,710) | 36,604) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Total debt | 39,863) | 40,105) | 39,973) | 41,283) | 41,403) | 38,925) | 38,424) | 39,586) | 38,524) | 37,368) | 39,345) | 37,275) | 35,710) | 37,128) | 35,904) | 34,866) | 34,577) | 33,989) | ||||||
| Total assets | 59,920) | 60,037) | 59,515) | 60,608) | 59,555) | 56,329) | 55,182) | 56,172) | 53,801) | 53,513) | 56,147) | 52,089) | 50,442) | 52,014) | 50,436) | 48,502) | 49,248) | 50,878) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.67 | 0.67 | 0.67 | 0.68 | 0.70 | 0.69 | 0.70 | 0.70 | 0.72 | 0.70 | 0.70 | 0.72 | 0.71 | 0.71 | 0.71 | 0.72 | 0.70 | 0.67 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.07 | 0.08 | 0.10 | 0.09 | 0.08 | 0.08 | 0.10 | 0.09 | 0.09 | 0.10 | 0.12 | 0.12 | 0.10 | 0.12 | ||||||
| Booking Holdings Inc. | 0.68 | 0.66 | 0.64 | 0.59 | 0.60 | 0.59 | 0.60 | 0.58 | 0.59 | 0.61 | 0.58 | 0.54 | 0.53 | 0.48 | 0.49 | 0.42 | 0.39 | 0.44 | ||||||
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| DoorDash, Inc. | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Starbucks Corp. | 0.49 | 0.50 | 0.50 | 0.51 | 0.49 | 0.49 | 0.50 | 0.52 | 0.53 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.54 | 0.54 | 0.55 | 0.51 | ||||||
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
Debt to assets = Total debt ÷ Total assets
= 39,863 ÷ 59,920 = 0.67
2 Click competitor name to see calculations.
The solvency profile exhibits a high degree of stability over the analyzed period from March 2022 through June 2026. While both total debt and total assets experienced absolute growth, the proportionality between these two metrics remained consistent, indicating a controlled approach to leverage during asset expansion.
- Debt to Assets Ratio
- The ratio fluctuated within a narrow range between 0.67 and 0.72. An initial upward trend was observed in early 2022, reaching a peak of 0.72 by September 2022. The ratio then stabilized around 0.70 to 0.71 for several quarters before a secondary peak of 0.72 occurred in June 2024. A gradual decline followed, with the ratio returning to 0.67 by December 2025 and remaining at that level through June 2026.
- Total Debt Trajectory
- Total debt demonstrated a general upward trend, increasing from 33,989 million USD in March 2022 to a maximum of 41,403 million USD in June 2025. A slight contraction in debt levels is observed in the final quarters of the period, ending at 39,863 million USD in June 2026.
- Total Asset Expansion
- Total assets grew from 50,878 million USD in March 2022 to 59,920 million USD by June 2026. The growth in assets largely mirrored the increase in debt, which prevented a significant spike in the solvency ratio. Notable asset growth occurred between December 2023 and June 2025, which helped offset the increasing debt burden during that interval.
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Financial Leverage
McDonald’s Corp., financial leverage 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) | ||||||||||||||||||||||||
| Total assets | 59,920) | 60,037) | 59,515) | 60,608) | 59,555) | 56,329) | 55,182) | 56,172) | 53,801) | 53,513) | 56,147) | 52,089) | 50,442) | 52,014) | 50,436) | 48,502) | 49,248) | 50,878) | ||||||
| Shareholders’ deficit | (1,023) | (1,286) | (1,791) | (2,163) | (2,760) | (3,454) | (3,797) | (5,177) | (4,824) | (4,833) | (4,707) | (4,855) | (4,999) | (5,776) | (6,003) | (6,566) | (6,370) | (5,991) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 3.69 | 3.51 | 2.71 | 2.68 | 3.47 | 3.16 | 2.49 | 2.61 | 3.29 | 3.11 | 2.53 | 2.35 | 4.19 | 3.78 | 2.88 | 2.90 | 3.63 | 3.60 | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | 23.47 | 9.12 | 6.01 | 6.12 | 5.12 | ||||||
| Chipotle Mexican Grill Inc. | 4.03 | 3.66 | 3.18 | 2.88 | 2.63 | 2.59 | 2.52 | 2.49 | 2.40 | 2.50 | 2.63 | 2.74 | 2.73 | 2.84 | 2.93 | 2.93 | 3.04 | 3.03 | ||||||
| DoorDash, Inc. | 1.97 | 1.93 | 1.96 | 1.89 | 1.90 | 1.62 | 1.65 | 1.62 | 1.65 | 1.64 | 1.59 | 1.53 | 1.50 | 1.48 | 1.45 | 1.40 | 1.34 | 1.47 | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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
Financial leverage = Total assets ÷ Shareholders’ deficit
= 59,920 ÷ -1,023 = —
2 Click competitor name to see calculations.
The balance sheet exhibits a period of asset expansion coupled with a significant reduction in the shareholders' deficit, indicating a strategic shift in the solvency profile from early 2022 through mid-2026.
- Asset Growth Trend
- Total assets demonstrated a general upward trajectory, increasing from 50,878 million USD in March 2022 to 59,920 million USD by June 2026. Despite intermittent fluctuations between 2022 and 2024, the long-term trend reflects a steady expansion of the company's total resource base.
- Shareholders' Deficit Recovery
- A persistent negative equity position is observed throughout the reported period; however, the magnitude of this deficit decreased substantially over time. After reaching a peak deficit of 6,566 million USD in September 2022, the deficit narrowed consistently, falling to 1,023 million USD by June 2026. This trend suggests a systematic improvement in the company's net worth.
- Financial Leverage Analysis
- The simultaneous growth of total assets and the narrowing of the shareholders' deficit indicate a reduction in overall financial leverage. The move from a deep deficit of approximately 6 billion USD toward a near-zero equity position suggests a strengthening of the capital structure and a reduction in the relative reliance on liabilities to finance operations.
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Interest Coverage
McDonald’s Corp., interest coverage 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) | ||||||||||||||||||||||||
| Net income | 2,362) | 1,983) | 2,164) | 2,278) | 2,253) | 1,868) | 2,017) | 2,255) | 2,022) | 1,929) | 2,039) | 2,317) | 2,310) | 1,802) | 1,903) | 1,982) | 1,188) | 1,104) | ||||||
| Add: Income tax expense | 574) | 559) | 593) | 671) | 608) | 462) | 521) | 588) | 533) | 480) | 476) | 606) | 506) | 465) | 436) | 555) | 221) | 437) | ||||||
| Add: Interest expense | 409) | 400) | 410) | 406) | 390) | 376) | 380) | 381) | 373) | 372) | 360) | 341) | 330) | 330) | 323) | 306) | 291) | 287) | ||||||
| Earnings before interest and tax (EBIT) | 3,345) | 2,942) | 3,167) | 3,355) | 3,251) | 2,706) | 2,918) | 3,224) | 2,928) | 2,781) | 2,875) | 3,264) | 3,147) | 2,597) | 2,662) | 2,842) | 1,700) | 1,829) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Interest coverage1 | 7.88 | 7.92 | 7.89 | 7.88 | 7.92 | 7.80 | 7.87 | 7.95 | 8.19 | 8.60 | 8.73 | 8.82 | 8.73 | 7.84 | 7.48 | 7.44 | 7.64 | 8.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 68.26 | 171.79 | 1,046.67 | 307.00 | 301.82 | 643.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 9.42 | 7.42 | 5.23 | 4.48 | 4.16 | 4.91 | 6.63 | 7.16 | 7.79 | 7.63 | 7.11 | 8.82 | 9.14 | 10.82 | 11.03 | 11.24 | 7.95 | 3.94 | ||||||
| DoorDash, Inc. | — | — | — | — | — | — | — | — | — | — | — | -1,053.00 | -1,285.00 | -687.50 | -698.50 | -445.50 | -345.50 | -259.50 | ||||||
| Starbucks Corp. | 5.39 | 5.06 | 5.62 | 7.59 | 8.69 | 9.40 | 9.84 | 10.50 | 10.61 | 11.07 | 10.82 | 10.22 | 10.01 | 9.66 | 9.76 | 12.25 | 12.95 | 13.08 | ||||||
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
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (3,345 + 2,942 + 3,167 + 3,355)
÷ (409 + 400 + 410 + 406)
= 7.88
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a stable capacity to service interest obligations despite a persistent increase in financing costs. While operational earnings have expanded since early 2022, the simultaneous rise in interest expenses has led to a normalization of the interest coverage ratio after a period of volatility.
- Earnings Before Interest and Tax (EBIT)
- A significant increase in operational profitability was observed between the second and third quarters of 2022, with EBIT rising from 1,700 million to 2,842 million. From 2023 through mid-2026, earnings remained consistently strong, generally fluctuating between 2,706 million and 3,355 million, indicating a sustained level of core operational performance.
- Interest Expense
- A consistent upward trajectory is evident in interest expenses, which grew from 287 million in March 2022 to 409 million by June 2026. This steady increase suggests a rising cost of debt or an expansion of the company's total borrowings over the observed period.
- Interest Coverage Ratio
- The interest coverage ratio exhibited fluctuation in the initial years, reaching a peak of 8.82 in September 2023. However, from March 2024 through June 2026, the ratio entered a phase of stabilization, remaining within a narrow range of 7.80 to 7.95. This indicates that while interest costs have risen, they are well-covered by operational earnings, with EBIT exceeding interest obligations by approximately 7.8 to 7.9 times.
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