Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel LibreOffice Calc

Long-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net fixed asset turnover 0.77 0.87 0.92 1.02 1.16
Net fixed asset turnover (including operating lease, right-of-use asset) 0.50 0.56 0.92 1.02 1.16
Total asset turnover 0.36 0.44 0.64 0.68 0.79
Equity turnover

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. McDonald’s Corp. net fixed asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). McDonald’s Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 and from 2019 to 2020.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. McDonald’s Corp. total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Net Fixed Asset Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Net property and equipment 24,958,200  24,160,000  22,842,700  22,448,300  21,257,600 
Long-term Activity Ratio
Net fixed asset turnover1 0.77 0.87 0.92 1.02 1.16
Benchmarks
Net Fixed Asset Turnover, Competitors2
Starbucks Corp. 3.77 4.12 4.17 4.55 4.70
Net Fixed Asset Turnover, Sector
Consumer Services 1.37 1.56 1.59 1.65 1.78
Net Fixed Asset Turnover, Industry
Consumer Discretionary 3.32 3.63 3.58 3.53 3.84

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net fixed asset turnover = Revenues ÷ Net property and equipment
= 19,207,800 ÷ 24,958,200 = 0.77

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. McDonald’s Corp. net fixed asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
 
Net property and equipment 24,958,200  24,160,000  22,842,700  22,448,300  21,257,600 
Lease right-of-use asset, net 13,827,700  13,261,200  —  —  — 
Net property and equipment (including operating lease, right-of-use asset) 38,785,900  37,421,200  22,842,700  22,448,300  21,257,600 
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 0.50 0.56 0.92 1.02 1.16
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Starbucks Corp. 1.64 4.12 4.17 4.55 4.70
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Consumer Services 0.80 1.09 1.59 1.65 1.78
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Consumer Discretionary 2.59 3.11 3.58 3.53 3.84

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Net property and equipment (including operating lease, right-of-use asset)
= 19,207,800 ÷ 38,785,900 = 0.50

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). McDonald’s Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 and from 2019 to 2020.

Total Asset Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Total assets 52,626,800  47,510,800  32,811,200  33,803,700  31,023,900 
Long-term Activity Ratio
Total asset turnover1 0.36 0.44 0.64 0.68 0.79
Benchmarks
Total Asset Turnover, Competitors2
Starbucks Corp. 0.80 1.38 1.02 1.56 1.49
Total Asset Turnover, Sector
Consumer Services 0.52 0.71 0.80 0.94 1.01
Total Asset Turnover, Industry
Consumer Discretionary 0.88 0.97 1.00 0.96 1.01

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Total asset turnover = Revenues ÷ Total assets
= 19,207,800 ÷ 52,626,800 = 0.36

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. McDonald’s Corp. total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Equity Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Shareholders’ equity (deficit) (7,824,900) (8,210,300) (6,258,400) (3,268,000) (2,204,300)
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, Competitors2
Starbucks Corp. 21.14 4.11 3.62
Equity Turnover, Sector
Consumer Services 20.72 12.48
Equity Turnover, Industry
Consumer Discretionary 5.02 5.95 5.65 5.35 5.08

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Equity turnover = Revenues ÷ Shareholders’ equity (deficit)
= 19,207,800 ÷ -7,824,900 =

2 Click competitor name to see calculations.