Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
McDonald’s Corp., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of long-term investment activity ratios reveals generally stable performance with some indications of potential shifts in asset utilization. The period under review demonstrates consistent, albeit modest, fluctuations in key turnover metrics.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited relative stability between 2021 and 2023, fluctuating between 0.92 and 0.95. A slight decrease to 0.88 is observed in the most recent year, 2025, suggesting a potential decline in the efficiency with which fixed assets are generating revenue. This warrants further investigation to determine the underlying causes, such as potential underutilization of assets or a slowdown in sales relative to fixed asset investment.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, the net fixed asset turnover ratio shows a gradual increase from 0.61 in 2021 to 0.67 in 2024. However, a decrease to 0.63 is noted in 2025. This suggests that the inclusion of these assets initially improved the apparent efficiency of asset utilization, but this trend reversed in the final year. The impact of lease obligations on overall asset efficiency should be monitored.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a similar pattern to the net fixed asset turnover, with a slight increase from 0.43 in 2021 to 0.47 in 2024, followed by a decrease to 0.45 in 2025. This indicates that the company’s ability to generate sales from its total asset base experienced a modest improvement before leveling off and slightly declining. The consistency of this ratio suggests a stable relationship between sales and overall asset investment.
- Equity Turnover
- Values for the equity turnover ratio are not available for any of the years presented, precluding any analysis of this metric. The absence of this information limits a complete assessment of the company’s financial leverage and its impact on asset utilization.
Overall, the observed trends suggest a generally stable, but potentially softening, asset utilization efficiency. The slight declines in both net fixed asset turnover and total asset turnover in 2025 warrant further scrutiny to determine if they represent a temporary fluctuation or the beginning of a more significant trend.
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Net Fixed Asset Turnover
McDonald’s Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,885) | 25,920) | 25,494) | 23,183) | 23,223) | |
| Net property and equipment, including finance lease right-of-use asset | 30,409) | 27,315) | 26,698) | 25,287) | 24,721) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.88 | 0.95 | 0.95 | 0.92 | 0.94 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 114.40 | 75.52 | 61.98 | 69.41 | 38.27 | |
| Booking Holdings Inc. | 33.35 | 28.53 | 27.25 | 25.55 | 13.33 | |
| Chipotle Mexican Grill Inc. | 4.45 | 4.73 | 4.55 | 4.43 | 4.27 | |
| DoorDash, Inc. | 12.86 | 13.78 | 12.13 | 10.33 | 12.16 | |
| Starbucks Corp. | 4.38 | 4.17 | 4.87 | 4.92 | 4.56 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | 2.96 | 2.96 | 2.93 | 2.73 | 2.39 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 2.79 | 3.24 | 3.51 | 3.48 | 3.32 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover = Revenues ÷ Net property and equipment, including finance lease right-of-use asset
= 26,885 ÷ 30,409 = 0.88
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally stable pattern over the observed period, with a slight decline in the most recent year. Revenues demonstrate a consistent upward trajectory, while net property and equipment also increased, though at a varying pace. The interplay between these two factors influences the observed turnover ratio.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio began at 0.94 in 2021, decreased slightly to 0.92 in 2022, and then recovered to 0.95 in both 2023 and 2024. A noticeable decrease to 0.88 is observed in 2025. This suggests that, initially, the company maintained a consistent level of revenue generation relative to its investment in fixed assets. The 2025 decline indicates a reduced efficiency in utilizing fixed assets to generate revenue.
- Revenue Trend
- Revenues increased from US$23,223 million in 2021 to US$26,885 million in 2025. This represents a cumulative growth of approximately 16% over the five-year period. The growth was not linear, with a slight decrease observed between 2021 and 2022, followed by more substantial increases in subsequent years.
- Net Property, Plant & Equipment Trend
- Net property and equipment increased from US$24,721 million in 2021 to US$30,409 million in 2025, representing a cumulative increase of approximately 23%. The rate of increase in fixed assets was generally higher than the rate of revenue growth, particularly between 2024 and 2025, which likely contributed to the decrease in the net fixed asset turnover ratio in 2025.
The combination of increasing revenues and increasing fixed assets resulted in a relatively stable turnover ratio for the majority of the period. However, the accelerated growth in fixed assets in 2025, coupled with a more moderate revenue increase, led to a reduction in the ratio, suggesting a potential need to evaluate the efficiency of asset utilization.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
McDonald’s Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,885) | 25,920) | 25,494) | 23,183) | 23,223) | |
| Net property and equipment, including finance lease right-of-use asset | 30,409) | 27,315) | 26,698) | 25,287) | 24,721) | |
| Operating lease right-of-use asset, net | 12,438) | 11,319) | 11,724) | 11,052) | 13,552) | |
| Net property and equipment, including finance lease right-of-use asset (including operating lease, right-of-use asset) | 42,847) | 38,634) | 38,422) | 36,339) | 38,273) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.63 | 0.67 | 0.66 | 0.64 | 0.61 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | 47.63 | 38.15 | 35.54 | 32.43 | 13.98 | |
| Booking Holdings Inc. | 18.71 | 17.07 | 14.35 | 13.01 | 8.31 | |
| Chipotle Mexican Grill Inc. | 1.67 | 1.77 | 1.72 | 1.64 | 1.54 | |
| DoorDash, Inc. | 9.12 | 9.19 | 7.52 | 6.14 | 6.62 | |
| Starbucks Corp. | 2.09 | 2.02 | 2.28 | 2.21 | 1.99 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | 1.82 | 1.81 | 1.77 | 1.63 | 1.36 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.22 | 2.53 | 2.69 | 2.66 | 2.52 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Net property and equipment, including finance lease right-of-use asset (including operating lease, right-of-use asset)
= 26,885 ÷ 42,847 = 0.63
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated including operating lease right-of-use assets, demonstrates a generally increasing trend from 2021 to 2024, followed by a slight decrease in the most recent year. Revenues exhibited moderate growth over the period, while net property and equipment fluctuated.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The ratio increased from 0.61 in 2021 to 0.67 in 2024, indicating improving efficiency in generating revenue from fixed assets. This suggests the company was becoming more effective at utilizing its asset base to drive sales during this timeframe. However, the ratio decreased to 0.63 in 2025, potentially signaling a slight reduction in asset utilization efficiency or a disproportionate increase in fixed assets relative to revenue.
- Revenue Trend
- Revenues experienced a minor decline between 2021 and 2022, followed by consistent growth through 2025. The largest year-over-year increase occurred between 2022 and 2023, with subsequent increases being more moderate. This positive revenue trajectory generally supported the increasing net fixed asset turnover ratio observed during the 2021-2024 period.
- Net Property and Equipment Trend
- Net property and equipment decreased from 2021 to 2022, then increased in both 2023 and 2024, remaining relatively stable between those years. A more substantial increase occurred in 2025, reaching 42,847 US$ in millions. This increase in fixed assets in 2025, coupled with a slower revenue growth rate, likely contributed to the observed decrease in the net fixed asset turnover ratio for that year.
Overall, the company demonstrated improving efficiency in asset utilization for the majority of the analyzed period. The slight decline in the net fixed asset turnover ratio in 2025 warrants further investigation to determine if it represents a temporary fluctuation or the beginning of a more sustained trend.
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Total Asset Turnover
McDonald’s Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,885) | 25,920) | 25,494) | 23,183) | 23,223) | |
| Total assets | 59,515) | 55,182) | 56,147) | 50,436) | 53,854) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.45 | 0.47 | 0.45 | 0.46 | 0.43 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 0.55 | 0.53 | 0.48 | 0.52 | 0.44 | |
| Booking Holdings Inc. | 0.92 | 0.86 | 0.88 | 0.67 | 0.46 | |
| Chipotle Mexican Grill Inc. | 1.33 | 1.23 | 1.23 | 1.25 | 1.13 | |
| DoorDash, Inc. | 0.70 | 0.83 | 0.80 | 0.67 | 0.72 | |
| Starbucks Corp. | 1.16 | 1.15 | 1.22 | 1.15 | 0.93 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Services | 0.75 | 0.76 | 0.74 | 0.70 | 0.60 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.86 | 0.93 | 0.97 | 0.96 | 0.88 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Total asset turnover = Revenues ÷ Total assets
= 26,885 ÷ 59,515 = 0.45
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally stable pattern over the five-year period, with some fluctuation. Revenues demonstrate a consistent upward trajectory, while total assets show a more variable pattern. The interplay between these two elements defines the observed trends in asset turnover.
- Total Asset Turnover Trend
- The total asset turnover ratio increased from 0.43 in 2021 to 0.46 in 2022, indicating improved efficiency in generating revenue from its asset base. A slight decrease to 0.45 was noted in 2023. The ratio then rose again in 2024 to 0.47, representing the highest value within the observed period. Finally, the ratio decreased slightly to 0.45 in 2025.
- Revenue Impact
- Revenues increased steadily throughout the period, moving from US$23,223 million in 2021 to US$26,885 million in 2025. This consistent revenue growth generally supports increases in the asset turnover ratio, as a larger revenue base is generated from a relatively consistent level of assets.
- Asset Impact
- Total assets decreased from US$53,854 million in 2021 to US$50,436 million in 2022. This decrease, coupled with stable revenues, contributed to the increase in the asset turnover ratio in 2022. Assets then increased to US$56,147 million in 2023, which partially offset the revenue gains and led to a slight decrease in the turnover ratio. Further asset increases were observed in 2024 and 2025, reaching US$55,182 million and US$59,515 million respectively. The 2024 increase in assets was more than offset by revenue growth, resulting in a higher turnover ratio, while the 2025 asset increase led to a slight decrease in the ratio.
Overall, the company demonstrates a reasonable ability to generate revenue from its assets. The fluctuations in the total asset turnover ratio appear to be primarily driven by changes in the total asset base, with consistent revenue growth providing a supporting influence.
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Equity Turnover
McDonald’s Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 26,885) | 25,920) | 25,494) | 23,183) | 23,223) | |
| Shareholders’ equity (deficit) | (1,791) | (3,797) | (4,707) | (6,003) | (4,601) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.49 | 1.32 | 1.21 | 1.51 | 1.25 | |
| Booking Holdings Inc. | — | — | — | 6.14 | 1.77 | |
| Chipotle Mexican Grill Inc. | 4.21 | 3.09 | 3.22 | 3.65 | 3.29 | |
| DoorDash, Inc. | 1.37 | 1.37 | 1.27 | 0.97 | 1.05 | |
| Starbucks Corp. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Consumer Services | 23.02 | 25.84 | 42.99 | 34.91 | 10.21 | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 2.67 | 3.21 | 3.82 | 4.14 | 3.70 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Equity turnover = Revenues ÷ Shareholders’ equity (deficit)
= 26,885 ÷ -1,791 = —
2 Click competitor name to see calculations.
Revenues exhibited a generally positive trajectory over the five-year period, while shareholders’ equity demonstrated significant fluctuations. The equity turnover ratio, calculated from these figures, reveals a dynamic relationship between revenue generation and equity investment.
- Revenue Trend
- Revenues experienced a slight decrease from 2021 to 2022, moving from US$23,223 million to US$23,183 million. Subsequently, revenues increased consistently through 2025, reaching US$26,885 million. This indicates a strengthening of sales performance in the later years of the observed period.
- Shareholders’ Equity Trend
- Shareholders’ equity began with a deficit of US$4,601 million in 2021. This deficit deepened to US$6,003 million in 2022 before beginning a recovery. By 2025, the deficit had substantially reduced to US$1,791 million, suggesting improved financial health and a reduction in accumulated losses. The negative equity position throughout the period warrants attention.
- Equity Turnover Analysis
- Given the negative shareholders’ equity values, the equity turnover ratio will consistently be negative. While a precise calculation is not possible without the complete ratio values, the trend can be inferred. As revenues increased and shareholders’ equity moved towards zero, the absolute value of the equity turnover ratio likely decreased, indicating a more efficient use of equity in generating revenue. A negative ratio signifies that the company is operating with more liabilities than equity, and each dollar of equity generates a negative amount of revenue. The movement towards a less negative ratio suggests a gradual improvement in this relationship, though the underlying negative equity position remains a concern.
The interplay between revenue growth and the reduction in the shareholders’ equity deficit suggests a potential shift in the company’s financial structure. Continued monitoring of these trends, alongside other financial metrics, is recommended to assess the sustainability of this improvement.
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