McDonald’s Corp. (NYSE:MCD)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows an overall upward trend from March 31, 2021, starting at 0.8 and peaking around 1.05 during September 30, 2023. After this peak, the ratio stabilizes slightly above 1.0 through most of 2024, before experiencing a minor decline to approximately 0.96 by September 30, 2025. This pattern suggests improving efficiency in using net fixed assets to generate sales over the initial years, followed by a modest reduction in turnover efficiency towards the end of the period.

Total Asset Turnover

The total asset turnover ratio exhibits a gradual increase from 0.38 at the beginning of 2021 to roughly 0.48 in mid-2022 and again in mid-2024, reflecting an enhancement in the company's ability to generate revenue from its total assets. However, some fluctuations occur with small decreases post-mid-2022 and a slight decline after mid-2024, ending at approximately 0.43 by September 2025. This indicates some variability in asset use efficiency but with a general improvement compared to the starting period.

Equity Turnover

No data is available for the equity turnover ratio, precluding analysis of trends or efficiency related to shareholders' equity turnover.

Revenues

Revenues exhibit a generally increasing trend over the examined periods with some fluctuations. Starting at $5,125 million in March 2021, revenue rose steadily to a peak of $6,692 million by September 2023. There are observable seasonal patterns, as revenues tend to increase during the mid-year quarters (June and September) and the final quarter of respective years. After peaking in September 2023, revenues experienced short-term declines but maintained an overall upward trajectory, reaching $7,078 million by September 2025.

Net Property and Equipment

The net property and equipment values show modest fluctuations but generally trend upward toward the later periods. The figures started around $24,550 million in March 2021, experienced a slight decline reaching a low of $22,698 million in September 2022, before gradually increasing and ultimately peaking at $27,486 million by September 2025. This pattern suggests ongoing investment in fixed assets, possibly reflecting expansion or refurbishment activities during these years.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures operational efficiency in generating revenue from fixed assets, demonstrates a gradual improvement in the initial quarters, rising from 0.80 in March 2021 to a peak of approximately 1.05 in September 2023. After this peak, the ratio slightly declines and stabilizes around the 0.96 to 1.02 range through to September 2025. This indicates that while the company improved its efficiency in utilizing fixed assets to generate revenue until late 2023, the efficiency gains plateaued or slightly diminished thereafter.

Overall Insights

The analysis reveals a company experiencing revenue growth alongside continuous investment in its fixed asset base. Although the fixed asset turnover ratio improved initially, indicating better utilization of assets to support revenue growth, more recent periods suggest stabilization or a mild decline in this efficiency metric. The robust revenue growth and increasing asset base imply strategic capital allocations, but the change in turnover ratio hints at potential operational challenges or a phase of integrating new assets before they can fully contribute to revenue generation.

The financial data over the periods analyzed indicates several noteworthy trends in key performance metrics.

Revenues

Revenues display a generally upward trend over the timeframe, beginning at approximately 5.1 billion US dollars and reaching well above 7 billion US dollars in the most recent quarter. There are periods of acceleration, notably around mid-2023 and into 2024, where revenue increases sharply. Some quarters exhibit slight declines or stagnation, such as late 2021 into early 2022 and certain periods in 2024 and 2025, but the overall trajectory remains positive.

Total Assets

Total assets show more variability with an initial moderate increase from around 51 billion to nearly 54 billion in 2021, followed by a decline during 2022 to just under 49 billion. Subsequently, assets recover and grow steadily, reaching over 60 billion by late 2025. This pattern suggests phases of asset optimization or divestiture in 2022, followed by renewed investment or acquisition activity thereafter.

Total Asset Turnover

The total asset turnover ratio generally trends downward slightly over the period, starting around 0.38 and peaking near 0.48 between 2021 and 2023. Thereafter, it gradually declines to about 0.43 by the final quarter, indicating a modest decrease in how efficiently the company is generating revenues from its assets. Despite this decline, the ratio remains relatively stable, suggesting consistent asset utilization with minor fluctuations.

Overall, revenues have increased considerably, while total assets demonstrated both contraction and expansion phases before a steady rise. The asset turnover ratio reveals a slight decreasing efficiency trend, potentially reflecting greater asset base expansion relative to revenue gains.

The financial data demonstrates several notable trends in revenue and shareholders' equity over the analyzed periods.

Revenues

Revenues generally exhibit a positive trend over the periods, with periodic fluctuations. Starting at approximately $5,125 million in March 2021, revenues increase steadily with peaks at various quarters, reaching as high as $7,078 million by September 2025. Notably, there are observable seasonal fluctuations, with some quarters showing dips followed by recoveries. For example, after a peak of $6,201 million in September 2021, there was a slight decrease in December 2021, followed by fluctuations in subsequent quarters. Revenues increased again significantly in mid-2023 and toward late 2024 and 2025, indicating an overall upward trend in sales or service income.

Shareholders’ Equity (Deficit)

The shareholders' equity shows a trend of gradual improvement over the periods, moving from a large deficit towards a consistently smaller deficit. Beginning at a deficit of approximately -$7,236 million in March 2021, the equity position improves incrementally each quarter. By March 2025, the deficit narrows to about -$2,163 million. Although the equity remains in deficit throughout, the consistent reduction in negative equity may indicate efforts to strengthen the capital base, reduce liabilities, or improve asset valuation. The trend suggests financial stabilization, but the persistent negative equity position invites further analysis of the underlying causes.

Equity Turnover

No data is provided for the equity turnover ratio, making it impossible to analyze or comment on this measure of efficiency in utilizing equity to generate revenue.

Overall, the company shows solid revenue growth with recurring seasonal patterns and a positive movement toward reducing shareholders' equity deficits. Continuing monitoring of equity trends and exploring mechanisms to convert negative equity into positive figures should be prioritized alongside sustaining revenue growth.