Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

McDonald’s Corp. (NYSE:MCD)

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Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

McDonald’s Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McDonald’s Corp.’s inventory turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp.’s payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. McDonald’s Corp.’s working capital turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. McDonald’s Corp.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp.’s operating cycle deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. McDonald’s Corp.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. McDonald’s Corp.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Company-operated restaurant expenses
Inventories, at cost, not in excess of market
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
Starbucks Corp.
Inventory Turnover, Sector
Travel & Leisure
Inventory Turnover, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Inventory turnover = Company-operated restaurant expenses ÷ Inventories, at cost, not in excess of market
= ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McDonald’s Corp.’s inventory turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Sales by Company-operated restaurants
Accounts and notes receivable
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
Booking Holdings Inc.
Starbucks Corp.
Receivables Turnover, Sector
Travel & Leisure
Receivables Turnover, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Receivables turnover = Sales by Company-operated restaurants ÷ Accounts and notes receivable
= ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Company-operated restaurant expenses
Accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
Booking Holdings Inc.
Starbucks Corp.
Payables Turnover, Sector
Travel & Leisure
Payables Turnover, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Payables turnover = Company-operated restaurant expenses ÷ Accounts payable
= ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp.’s payables turnover ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Working Capital Turnover

McDonald’s Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in thousands)
Current assets
Less: Current liabilities
Working capital
 
Sales by Company-operated restaurants
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Booking Holdings Inc.
Starbucks Corp.
Working Capital Turnover, Sector
Travel & Leisure
Working Capital Turnover, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Working capital turnover = Sales by Company-operated restaurants ÷ Working capital
= ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. McDonald’s Corp.’s working capital turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Average Inventory Processing Period

McDonald’s Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Starbucks Corp.
Average Inventory Processing Period, Sector
Travel & Leisure
Average Inventory Processing Period, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

McDonald’s Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Booking Holdings Inc.
Starbucks Corp.
Average Receivable Collection Period, Sector
Travel & Leisure
Average Receivable Collection Period, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. McDonald’s Corp.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Operating Cycle

McDonald’s Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
Starbucks Corp.
Operating Cycle, Sector
Travel & Leisure
Operating Cycle, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp.’s operating cycle deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Average Payables Payment Period

McDonald’s Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Booking Holdings Inc.
Starbucks Corp.
Average Payables Payment Period, Sector
Travel & Leisure
Average Payables Payment Period, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. McDonald’s Corp.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Cash Conversion Cycle

McDonald’s Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
Starbucks Corp.
Cash Conversion Cycle, Sector
Travel & Leisure
Cash Conversion Cycle, Industry
Consumer Services

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + =

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. McDonald’s Corp.’s cash conversion cycle deteriorated from 2017 to 2018 and from 2018 to 2019.