McDonald’s Corp. (MCD)


Short-term (Operating) Activity Analysis
Quarterly Data

Difficulty: Beginner


Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Turnover Ratios
Inventory turnover 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63 143.35 141.76 150.56 138.98
Receivables turnover 4.63 4.88 4.10 4.55 4.90 6.07 6.44 8.73 10.02 11.19 10.38 11.61 12.61 14.05 12.70 14.75 14.48 16.11 14.96
Payables turnover 9.86 9.74 6.84 9.13 9.75 12.47 11.26 16.40 22.38 18.19 16.80 15.35 23.41 21.08 15.98 17.74 17.26 21.19 17.78
Working capital turnover 14.10 6.13 9.27 5.35 7.85 5.67 5.22 13.05 4.64 5.57 11.08 6.72 7.45 2.46 10.91 5.31 20.92 12.64
Average No. of Days
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3 3 3 2 3
Add: Average receivable collection period 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29 25 25 23 24
Operating cycle 81 77 91 82 76 62 59 44 38 35 37 34 31 28 32 28 28 25 27
Less: Average payables payment period 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23 21 21 17 21
Cash conversion cycle 44 40 38 42 39 33 27 22 22 15 15 10 15 11 9 7 7 8 6

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McDonald’s Corp.’s inventory turnover improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019 not reaching Q4 2018 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp.’s receivables turnover improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp.’s payables turnover increased from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. McDonald’s Corp.’s working capital turnover deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 level.

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 average receivable collection period improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019.
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp.’s operating cycle improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 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.
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 Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.

Inventory Turnover

McDonald’s Corp., inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Company-operated restaurant expenses 1,967,100  1,886,200  1,956,600  2,047,900  2,130,500  2,130,900  2,210,100  2,479,800  2,903,300  2,816,400  3,035,900  3,239,500  3,248,100  3,175,300  3,418,600  3,607,700  3,596,300  3,354,300  3,676,700  3,874,700  3,969,800  3,767,100 
Inventories, at cost, not in excess of market 44,200  40,800  51,100  41,900  49,600  53,800  58,800  54,200  56,700  56,800  58,900  90,500  87,400  93,700  100,100  99,300  102,300  98,800  110,000  105,000  110,700  106,200 
Ratio
Inventory turnover1 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63 143.35 141.76 150.56 138.98
Benchmarks
Inventory Turnover, Competitors2
Delta Air Lines Inc. 18.43 18.48 18.43 16.30 11.60 15.46 13.06 14.87 17.70 18.99 17.89 20.49 20.36 23.74 24.53 28.66 24.11 27.95 26.96
Starbucks Corp. 7.29 7.70 7.26 7.15 6.99 7.04 6.63 6.59 6.61 7.07 6.17 6.22 6.29 6.42 5.96 6.46 6.87 6.93 6.29 6.60 6.97 6.95

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Inventory turnover = (Company-operated restaurant expensesQ2 2019 + Company-operated restaurant expensesQ1 2019 + Company-operated restaurant expensesQ4 2018 + Company-operated restaurant expensesQ3 2018) ÷ Inventories, at cost, not in excess of market
= (1,967,100 + 1,886,200 + 1,956,600 + 2,047,900) ÷ 44,200 = 177.78

2 Click competitor name to see calculations.

Ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. McDonald’s Corp.’s inventory turnover improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019 not reaching Q4 2018 level.

Receivables Turnover

McDonald’s Corp., receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Sales by Company-operated restaurants 2,400,400  2,240,500  2,371,200  2,511,000  2,594,900  2,535,600  2,673,100  3,064,300  3,569,600  3,411,900  3,652,800  3,972,100  3,916,600  3,753,500  4,030,200  4,282,900  4,261,100  3,914,100  4,296,700  4,596,200  4,785,900  4,490,500 
Accounts and notes receivable 2,055,000  1,992,700  2,441,500  2,266,800  2,217,200  1,951,600  1,976,200  1,569,000  1,457,300  1,336,700  1,474,100  1,349,800  1,267,100  1,162,100  1,298,700  1,136,200  1,178,600  1,091,800  1,214,400  1,226,700  1,294,500  1,229,700 
Ratio
Receivables turnover1 4.63 4.88 4.10 4.55 4.90 6.07 6.44 8.73 10.02 11.19 10.38 11.61 12.61 14.05 12.70 14.75 14.48 16.11 14.96
Benchmarks
Receivables Turnover, Competitors2
Booking Holdings Inc. 7.48 9.68 9.54 8.21 7.99 8.62 10.41 8.50 9.33 11.79 12.49 9.41 9.98 11.12 14.30 10.18 9.89 12.23 13.11
Delta Air Lines Inc. 16.07 14.25 19.20 17.46 17.74 16.38 17.35 16.86 18.43 17.14 19.20 19.88 19.18 18.62 20.15 20.69 20.81 19.85 17.57
Starbucks Corp. 36.32 35.04 35.67 28.21 26.98 26.68 25.72 28.31 27.78 25.06 27.73 27.46 27.11 25.82 26.65 27.39 27.00 25.58 26.07 27.65 26.53 26.00

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Receivables turnover = (Sales by Company-operated restaurantsQ2 2019 + Sales by Company-operated restaurantsQ1 2019 + Sales by Company-operated restaurantsQ4 2018 + Sales by Company-operated restaurantsQ3 2018) ÷ Accounts and notes receivable
= (2,400,400 + 2,240,500 + 2,371,200 + 2,511,000) ÷ 2,055,000 = 4.63

2 Click competitor name to see calculations.

Ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp.’s receivables turnover improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019.

Payables Turnover

McDonald’s Corp., payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Company-operated restaurant expenses 1,967,100  1,886,200  1,956,600  2,047,900  2,130,500  2,130,900  2,210,100  2,479,800  2,903,300  2,816,400  3,035,900  3,239,500  3,248,100  3,175,300  3,418,600  3,607,700  3,596,300  3,354,300  3,676,700  3,874,700  3,969,800  3,767,100 
Accounts payable 796,800  823,600  1,207,900  932,800  917,900  779,900  924,800  685,200  536,000  678,400  756,000  852,200  574,600  654,500  874,700  802,600  840,100  702,000  860,100  847,300  965,100  828,100 
Ratio
Payables turnover1 9.86 9.74 6.84 9.13 9.75 12.47 11.26 16.40 22.38 18.19 16.80 15.35 23.41 21.08 15.98 17.74 17.26 21.19 17.78
Benchmarks
Payables Turnover, Competitors2
Booking Holdings Inc. 0.00 0.00 0.00 0.03 0.09 0.20 0.38 0.36 0.55 0.94 1.02 0.96 1.23 1.77 1.96 1.74 2.01 1.39 3.05
Delta Air Lines Inc. 5.94 6.16 6.53 5.84 4.92 5.29 4.72 5.52 6.09 6.90 6.20 6.19 5.48 6.02 6.23 7.41 7.58 8.98 8.76
Marriott International Inc. 18.66 23.03 22.27 23.12 21.69 24.33 24.61 25.72 26.86 24.10 21.03 19.56 20.55 21.08 20.85 21.22 18.97 19.81 19.55 18.80 18.38 18.03
Starbucks Corp. 9.59 9.48 8.63 10.78 11.06 10.85 11.55 12.73 12.74 13.01 11.65 12.19 12.27 12.32 11.38 12.48 12.12 12.88 12.85 14.27 14.08 14.76

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Payables turnover = (Company-operated restaurant expensesQ2 2019 + Company-operated restaurant expensesQ1 2019 + Company-operated restaurant expensesQ4 2018 + Company-operated restaurant expensesQ3 2018) ÷ Accounts payable
= (1,967,100 + 1,886,200 + 1,956,600 + 2,047,900) ÷ 796,800 = 9.86

2 Click competitor name to see calculations.

Ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp.’s payables turnover increased from Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.

Working Capital Turnover

McDonald’s Corp., working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data (USD $ in thousands)
Current assets 3,915,400  4,964,400  4,053,200  5,553,100  4,355,600  4,909,300  5,327,200  4,790,300  5,892,500  5,907,200  4,848,600  4,302,100  5,046,600  5,051,600  9,643,000  4,492,600  5,972,200  3,592,800  4,185,500  5,210,400  5,913,700  4,836,300 
Less: Current liabilities 3,240,000  3,379,600  2,973,500  3,626,700  2,970,300  2,821,400  2,890,600  3,740,200  2,743,300  3,220,700  3,468,300  4,476,700  2,667,200  2,858,700  2,950,400  2,956,500  2,760,800  2,751,900  2,747,900  4,179,600  3,391,700  3,101,200 
Working capital 675,400  1,584,800  1,079,700  1,926,400  1,385,300  2,087,900  2,436,600  1,050,100  3,149,200  2,686,500  1,380,300  (174,600) 2,379,400  2,192,900  6,692,600  1,536,100  3,211,400  840,900  1,437,600  1,030,800  2,522,000  1,735,100 
Sales by Company-operated restaurants 2,400,400  2,240,500  2,371,200  2,511,000  2,594,900  2,535,600  2,673,100  3,064,300  3,569,600  3,411,900  3,652,800  3,972,100  3,916,600  3,753,500  4,030,200  4,282,900  4,261,100  3,914,100  4,296,700  4,596,200  4,785,900  4,490,500 
Ratio
Working capital turnover1 14.10 6.13 9.27 5.35 7.85 5.67 5.22 13.05 4.64 5.57 11.08 6.72 7.45 2.46 10.91 5.31 20.92 12.64
Benchmarks
Working Capital Turnover, Competitors2
Booking Holdings Inc. 4.02 9.62 2.99 2.55 2.85 2.61 2.29 2.22 2.54 2.95 4.22 3.55 2.65 3.31 4.36 3.34 3.18 2.03 2.17
Delta Air Lines Inc.
Marriott International Inc.
Starbucks Corp. 11.24 3.63 758.31 49.93 536.03 21.07 15.11 23.91 99.02 99.79 33.58 64.15 27.41 25.90 24.44 17.21 14.56 33.96 18.51 19.01

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Working capital turnover = (Sales by Company-operated restaurantsQ2 2019 + Sales by Company-operated restaurantsQ1 2019 + Sales by Company-operated restaurantsQ4 2018 + Sales by Company-operated restaurantsQ3 2018) ÷ Working capital
= (2,400,400 + 2,240,500 + 2,371,200 + 2,511,000) ÷ 675,400 = 14.10

2 Click competitor name to see calculations.

Ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. McDonald’s Corp.’s working capital turnover deteriorated from Q4 2018 to Q1 2019 but then improved from Q1 2019 to Q2 2019 exceeding Q4 2018 level.

Average Inventory Processing Period

McDonald’s Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Inventory turnover 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63 143.35 141.76 150.56 138.98
Ratio (no. of days)
Average inventory processing period1 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3 3 3 2 3
Benchmarks (no. of days)
Average Inventory Processing Period, Competitors2
Delta Air Lines Inc. 20 20 20 22 31 24 28 25 21 19 20 18 18 15 15 13 15 13 14
Starbucks Corp. 50 47 50 51 52 52 55 55 55 52 59 59 58 57 61 57 53 53 58 55 52 53

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 177.78 = 2

2 Click competitor name to see calculations.

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 (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Receivables turnover 4.63 4.88 4.10 4.55 4.90 6.07 6.44 8.73 10.02 11.19 10.38 11.61 12.61 14.05 12.70 14.75 14.48 16.11 14.96
Ratio (no. of days)
Average receivable collection period1 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29 25 25 23 24
Benchmarks (no. of days)
Average Receivable Collection Period, Competitors2
Booking Holdings Inc. 49 38 38 44 46 42 35 43 39 31 29 39 37 33 26 36 37 30 28
Delta Air Lines Inc. 23 26 19 21 21 22 21 22 20 21 19 18 19 20 18 18 18 18 21
Starbucks Corp. 10 10 10 13 14 14 14 13 13 15 13 13 13 14 14 13 14 14 14 13 14 14

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.63 = 79

2 Click competitor name to see calculations.

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 average receivable collection period improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019.

Operating Cycle

McDonald’s Corp., operating cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3 3 3 2 3
Average receivable collection period 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29 25 25 23 24
Ratio
Operating cycle1 81 77 91 82 76 62 59 44 38 35 37 34 31 28 32 28 28 25 27
Benchmarks
Operating Cycle, Competitors2
Delta Air Lines Inc. 43 46 39 43 52 46 49 47 41 40 39 36 37 35 33 31 33 31 35
Starbucks Corp. 60 57 60 64 66 66 69 68 68 67 72 72 71 71 75 70 67 67 72 68 66 67

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 79 = 81

2 Click competitor name to see calculations.

Ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp.’s operating cycle improved from Q4 2018 to Q1 2019 but then slightly deteriorated from Q1 2019 to Q2 2019.

Average Payables Payment Period

McDonald’s Corp., average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Payables turnover 9.86 9.74 6.84 9.13 9.75 12.47 11.26 16.40 22.38 18.19 16.80 15.35 23.41 21.08 15.98 17.74 17.26 21.19 17.78
Ratio (no. of days)
Average payables payment period1 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23 21 21 17 21
Benchmarks (no. of days)
Average Payables Payment Period, Competitors2
Booking Holdings Inc. 12,933 4,151 1,857 972 1,016 659 387 357 379 297 206 186 209 182 262 120
Delta Air Lines Inc. 61 59 56 63 74 69 77 66 60 53 59 59 67 61 59 49 48 41 42
Marriott International Inc. 20 16 16 16 17 15 15 14 14 15 17 19 18 17 18 17 19 18 19 19 20 20
Starbucks Corp. 38 39 42 34 33 34 32 29 29 28 31 30 30 30 32 29 30 28 28 26 26 25

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.86 = 37

2 Click competitor name to see calculations.

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.

Cash Conversion Cycle

McDonald’s Corp., cash conversion cycle calculation (quarterly data)

No. of days

Microsoft Excel LibreOffice Calc
Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014
Selected Financial Data
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3 3 3 2 3
Average receivable collection period 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29 25 25 23 24
Average payables payment period 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23 21 21 17 21
Ratio
Cash conversion cycle1 44 40 38 42 39 33 27 22 22 15 15 10 15 11 9 7 7 8 6
Benchmarks
Cash Conversion Cycle, Competitors2
Delta Air Lines Inc. -18 -13 -17 -20 -22 -23 -28 -19 -19 -13 -20 -23 -30 -26 -26 -18 -15 -10 -7
Starbucks Corp. 22 18 18 30 33 32 37 39 39 39 41 42 41 41 43 41 37 39 44 42 40 42

Based on: 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-08), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-08), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-03-01), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-11-04), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-05-07), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-11-03), 10-Q (filing date: 2014-08-04), 10-Q (filing date: 2014-05-06).

1 Q2 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 7937 = 44

2 Click competitor name to see calculations.

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 Q4 2018 to Q1 2019 and from Q1 2019 to Q2 2019.