Microsoft Excel LibreOffice Calc

Long-term (Investment) Activity Analysis

Difficulty: Beginner


Ratios (Summary)

McDonald's Corp., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net fixed asset turnover 1.02 1.16 1.10 1.12 1.09
Total asset turnover 0.68 0.79 0.67 0.80 0.77
Equity turnover 3.59 2.13 1.76

Source: Based on data from McDonald's Corp. Annual Reports

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. McDonald's Corp.'s net fixed asset turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. McDonald's Corp.'s total asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity.

Net Fixed Asset Turnover

McDonald's Corp., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Revenues 22,820,400  24,621,900  25,413,000  27,441,300  28,105,700 
Net property and equipment 22,448,300  21,257,600  23,117,600  24,557,500  25,747,300 
Ratio
Net fixed asset turnover1 1.02 1.16 1.10 1.12 1.09
Benchmarks
Net Fixed Asset Turnover, Competitors
Booking Holdings Inc. 26.41 30.96 33.57 42.43 50.30
Delta Air Lines Inc. 1.55 1.63 1.77 1.84 1.73
Marriott International Inc. 12.77 7.31 14.08 9.45 8.29
Starbucks Corp. 4.55 4.70 4.69 4.67 4.65
Net Fixed Asset Turnover, Sector
Travel & Leisure 2.17 2.15 2.11 2.06 1.91
Net Fixed Asset Turnover, Industry
Consumer Services 3.90 3.89 3.99 3.80 3.70

Source: Based on data from McDonald's Corp. Annual Reports

2017 Calculations

1 Net fixed asset turnover = Revenues ÷ Net property and equipment
= 22,820,400 ÷ 22,448,300 = 1.02

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. McDonald's Corp.'s net fixed asset turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Total Asset Turnover

McDonald's Corp., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Revenues 22,820,400  24,621,900  25,413,000  27,441,300  28,105,700 
Total assets 33,803,700  31,023,900  37,938,700  34,281,400  36,626,300 
Ratio
Total asset turnover1 0.68 0.79 0.67 0.80 0.77
Benchmarks
Total Asset Turnover, Competitors
Booking Holdings Inc. 0.50 0.54 0.53 0.57 0.65
Delta Air Lines Inc. 0.77 0.77 0.77 0.75 0.72
Marriott International Inc. 0.96 0.71 2.38 2.01 1.88
Starbucks Corp. 1.56 1.49 1.54 1.53 1.29
Total Asset Turnover, Sector
Travel & Leisure 0.81 0.81 0.86 0.88 0.85
Total Asset Turnover, Industry
Consumer Services 1.28 1.27 1.37 1.37 1.35

Source: Based on data from McDonald's Corp. Annual Reports

2017 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 22,820,400 ÷ 33,803,700 = 0.68

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. McDonald's Corp.'s total asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Equity Turnover

McDonald's Corp., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in thousands)
Revenues 22,820,400  24,621,900  25,413,000  27,441,300  28,105,700 
Shareholders' equity (deficit) (3,268,000) (2,204,300) 7,087,900  12,853,400  16,009,700 
Ratio
Equity turnover1 3.59 2.13 1.76
Benchmarks
Equity Turnover, Competitors
Booking Holdings Inc. 1.13 1.09 1.05 0.99 0.98
Delta Air Lines Inc. 2.97 3.23 3.75 4.58 3.24
Marriott International Inc. 6.14 3.19
Starbucks Corp. 4.11 3.62 3.29 3.12 3.32
Equity Turnover, Sector
Travel & Leisure 3.93 3.64 3.76 3.20 2.67
Equity Turnover, Industry
Consumer Services 4.10 3.95 4.11 3.78 3.49

Source: Based on data from McDonald's Corp. Annual Reports

2017 Calculations

1 Equity turnover = Revenues ÷ Shareholders' equity (deficit)
= 22,820,400 ÷ -3,268,000 =

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders' equity.