McDonald’s Corp. (NYSE:MCD)

The analysis of the financial ratios over the reported periods reveals several noteworthy trends.

Net Fixed Asset Turnover

The net fixed asset turnover demonstrates a gradual upward trend from 0.77 in March 2020 to a peak of 1.05 in December 2023. Following this peak, the ratio slightly declines but remains relatively stable around values between 1.00 and 1.04 through to the first quarter of 2025. This pattern indicates a steadily improving efficiency in utilizing fixed assets to generate sales over the observed time frame, with a strong performance sustained in the most recent quarters.

Total Asset Turnover

The total asset turnover ratio starts at 0.36 in March 2020 and generally increases, reaching approximately 0.48 by the end of 2021 and maintaining close to this level through 2024. Minor fluctuations occur around mid-2022 and thereafter, with the ratio oscillating between 0.45 and 0.48. The data suggest that the overall utilization of total assets to generate revenue has improved markedly from 2020, achieving a higher efficiency plateau during the later periods.

Equity Turnover

No data is available for the equity turnover ratio across all reported periods, thus no analysis can be conducted for this financial metric.

Revenues

The revenues exhibit fluctuations across the reported periods, with an initial decline from 4,714 million USD in March 2020 to 3,762 million USD in June 2020, likely impacted by external factors around that time. Subsequently, revenues generally increased, peaking in September 2021 at 6,201 million USD. Thereafter, there was some variability, with quarters alternating between moderate decreases and increases. Notably, revenues reached a high of 6,873 million USD in September 2024 before a decline to 5,956 million USD by March 2025. Overall, the revenue trend indicates recovery and growth following an initial dip, although recent quarters show some volatility and a downward adjustment by the end of the observed period.

Net Property and Equipment

The net property and equipment balance remains relatively stable across the periods, fluctuating within a range of approximately 22,698 million USD to 25,775 million USD. There was a gradual decrease noted from about 24,596 million USD in early 2020 to near 22,335 million USD by mid-2022, followed by a resurgence towards the latter periods. The figures peaked at 25,775 million USD in September 2024 before slightly declining again to 25,249 million USD by March 2025. This pattern suggests ongoing capital investments balanced with asset disposals or depreciation, reflecting maintenance and possible expansion of fixed asset base over time.

Net Fixed Asset Turnover

Net fixed asset turnover ratios start from 0.77 in September 2020, increasing steadily to a peak of 1.05 in September 2023. This ratio generally remains around or above 1.0 in subsequent periods, ending at 1.0 in March 2025. The upward trend indicates improving efficiency in utilizing fixed assets to generate revenue. The ratio's rise suggests that the company has been able to enhance revenue generation relative to its fixed asset base over time. Minor fluctuations in the ratio in the later periods demonstrate slight variations in asset productivity but overall confirm sustained operational efficiency.

Revenues

Revenues demonstrate variability across the observed periods with a notable initial decline from 4714 million USD in March 2020 to 3762 million USD in June 2020. Following this trough, revenues increased sharply reaching a peak of 6201 million USD in September 2021. After this peak, values experienced some fluctuations but generally remained elevated compared to the first year, indicating recovery and growth. In the most recent quarters, revenues increased again, peaking at 6873 million USD in September 2024, before showing a moderate decline toward 5956 million USD in March 2025. Overall, the revenue trend reveals resilience and recovery after early 2020 contractions, with periodic fluctuations likely influenced by seasonal factors or market conditions.

Total Assets

Total assets figures display moderate fluctuations over the time periods without a clear directional trend. Initially, assets slightly declined from 50568 million USD in March 2020 to 49939 million USD in June 2020, followed by mild recovery and periods of oscillation. Notable increases are observed in late 2023 and into 2024, reaching values above 56000 million USD, with the highest recorded at 56329 million USD in March 2025. Despite the fluctuations, total assets remained relatively stable within a band between approximately 48500 and 56300 million USD, suggesting consistent asset management amidst operational changes.

Total Asset Turnover

Total asset turnover ratios, available from September 2020 onwards, show an improving trend initially from 0.36 to 0.48 by December 2021, indicating enhanced efficiency in utilizing assets to generate revenues. After reaching this higher turnover, the ratio exhibits minor fluctuations but remains mostly stable between 0.45 and 0.48 through the subsequent periods. This stability suggests sustained operational efficiency in asset use despite variability in revenues and total assets.

Summary

The data collectively indicates that the company experienced an initial revenue decline in early 2020, likely linked to external disruptions. Revenues thereafter showed strong recovery and growth, peaking multiple times while total assets remained relatively stable, showing moderate growth in later periods. The total asset turnover ratio's improvement and stabilization suggest improved asset utilization efficiency. These patterns reflect a capacity to adapt and maintain operational performance despite fluctuations in market or economic conditions.

The financial data over the analyzed periods indicate several notable trends in revenues and shareholders’ equity for the company.

Revenues

Revenues exhibit a general upward trend from March 31, 2020 to March 31, 2025 despite some fluctuations. Initial values started at 4,714 million USD and showed variability, with a low point of 3,762 million USD in June 2020 followed by a recovery. Notable peaks occur towards the end of 2021 and into 2023, reaching values above 6,000 million USD in several quarters (e.g., 6,498 million USD in June 2023 and 6,873 million USD in September 2024). There is some volatility within each year but the revenue does not demonstrate a persistent decline. The most recent value in March 2025 decreases to 5,956 million USD from an earlier high in the prior quarter, indicating a short-term downward adjustment.

Shareholders’ Equity (Deficit)

Shareholders’ equity is negative throughout the entire period, indicating a deficit. However, the deficit fluctuates in magnitude over time. The largest negative values are observed in earlier periods (e.g., -9,293 million USD in March 2020 and -9,463 million USD in June 2020), followed by a consistent improvement trend until the end of 2021, reducing the deficit to around -4,601 million USD. After 2021, the deficit again deepens somewhat, reaching -6,566 million USD in September 2022, before a gradual recovery starting in late 2022. From 2023 onward, a steady improvement is evident with the deficit reducing to -3,454 million USD by March 2025, the lowest magnitude of negative equity during the timeline, suggesting improved financial stability in terms of shareholders' equity position.

Equity Turnover

This metric is not reported for any period, restricting the ability to analyze efficiency or asset utilization changes relative to equity.

In summary, revenues primarily increase over time despite quarter-to-quarter fluctuations, indicating growth with some volatility. Shareholders’ equity, while consistently negative, shows a positive trend towards reducing the equity deficit, hinting at improving balance sheet strength. Missing data on equity turnover limits deeper analysis of asset management efficiency.