Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
McDonald’s Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | McDonald’s Corp. inventory turnover ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | McDonald’s Corp. receivables turnover ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | McDonald’s Corp. payables turnover ratio decreased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | McDonald’s Corp. working capital turnover ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 exceeding Q2 2023 level. |
| 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. number of days of receivables outstanding improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | McDonald’s Corp. operating cycle improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
| 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. number of days of payables outstanding increased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
| 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. cash conversion cycle improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Inventory Turnover
McDonald’s Corp., inventory turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Company-operated restaurant expenses | 2,074,700) | 2,135,000) | 2,091,300) | 1,923,100) | 1,872,300) | 1,779,600) | 1,769,800) | 1,959,200) | 2,100,300) | 2,108,400) | 2,021,000) | 1,817,600) | 1,903,700) | 1,876,300) | 1,448,400) | 1,752,800) | 1,939,600) | 1,967,700) | 1,967,100) | 1,886,200) | ||||||
| Inventories, at cost, not in excess of market | 52,800) | 47,600) | 52,400) | 51,500) | 52,000) | 43,400) | 43,300) | 49,600) | 55,600) | 50,100) | 47,800) | 45,300) | 51,100) | 44,200) | 42,600) | 39,100) | 50,200) | 42,600) | 44,200) | 40,800) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 155.76 | 168.52 | 146.30 | 142.62 | 141.94 | 175.32 | 183.32 | 165.10 | 144.74 | 156.70 | 159.38 | 155.54 | 136.62 | 158.76 | 166.87 | 195.07 | 154.59 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Carnival Corp. & plc | 27.12 | 29.72 | 31.53 | 29.10 | 27.47 | 23.60 | 19.18 | 15.69 | 13.08 | 10.93 | 11.21 | 16.85 | 24.61 | 30.46 | 34.85 | 30.20 | 30.23 | 26.09 | 23.95 | 25.95 | ||||||
| Chipotle Mexican Grill Inc. | 185.34 | 175.86 | 191.68 | 194.58 | 184.27 | 191.96 | 214.37 | 203.97 | 177.91 | 195.78 | 213.29 | 211.26 | 186.94 | 189.01 | 191.72 | 195.93 | 170.29 | — | — | — | ||||||
| Starbucks Corp. | 14.46 | 12.95 | 12.54 | 11.70 | 10.97 | 10.97 | 11.79 | 13.24 | 12.89 | 12.64 | 12.25 | 12.45 | 11.90 | 11.80 | 13.06 | 13.72 | 12.44 | 12.24 | 12.56 | 13.20 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Inventory turnover
= (Company-operated restaurant expensesQ4 2023
+ Company-operated restaurant expensesQ3 2023
+ Company-operated restaurant expensesQ2 2023
+ Company-operated restaurant expensesQ1 2023)
÷ Inventories, at cost, not in excess of market
= (2,074,700 + 2,135,000 + 2,091,300 + 1,923,100)
÷ 52,800 = 155.76
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. inventory turnover ratio improved from Q2 2023 to Q3 2023 but then slightly deteriorated from Q3 2023 to Q4 2023 not reaching Q2 2023 level. |
Receivables Turnover
McDonald’s Corp., receivables turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Sales by Company-operated restaurants | 2,474,100) | 2,556,200) | 2,487,000) | 2,224,300) | 2,208,400) | 2,124,800) | 2,112,800) | 2,302,400) | 2,538,800) | 2,598,400) | 2,488,700) | 2,161,500) | 2,233,300) | 2,286,400) | 1,593,700) | 2,025,800) | 2,363,300) | 2,416,600) | 2,400,400) | 2,240,500) | ||||||
| Accounts and notes receivable | 2,488,000) | 2,247,100) | 2,193,600) | 2,075,500) | 2,115,000) | 1,889,900) | 1,836,700) | 1,674,100) | 1,872,400) | 1,828,500) | 1,808,300) | 1,733,700) | 2,110,300) | 2,391,800) | 2,852,600) | 1,695,300) | 2,224,200) | 2,005,300) | 2,055,000) | 1,992,700) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | 3.86 | 3.46 | 2.94 | 5.43 | 4.24 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 39.83 | 39.84 | 34.42 | 38.36 | 42.00 | 45.08 | 36.09 | 42.42 | 42.04 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 6.57 | 5.98 | 6.90 | 8.87 | 7.67 | 7.01 | 6.51 | 7.77 | 8.07 | 5.93 | 5.57 | 9.64 | 12.85 | 10.36 | 19.96 | 21.76 | 8.97 | — | — | — | ||||||
| Carnival Corp. & plc | 38.84 | 41.31 | 38.95 | 29.14 | 30.81 | 26.71 | 16.31 | 13.13 | 7.76 | 2.34 | 0.65 | 3.33 | 20.49 | 27.50 | 27.89 | 51.71 | 46.90 | 46.49 | 48.90 | 47.59 | ||||||
| Chipotle Mexican Grill Inc. | 85.44 | 134.08 | 152.24 | 136.37 | 80.79 | 118.06 | 97.41 | 87.64 | 75.77 | 94.54 | 90.40 | 92.26 | 57.27 | 83.86 | 82.63 | 89.64 | 69.36 | — | — | — | ||||||
| Starbucks Corp. | 30.38 | 30.71 | 28.67 | 28.30 | 27.44 | 27.91 | 31.27 | 29.45 | 30.92 | 29.76 | 27.09 | 26.09 | 26.62 | 27.31 | 28.33 | 29.70 | 30.15 | 32.97 | 36.32 | 35.04 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Receivables turnover
= (Sales by Company-operated restaurantsQ4 2023
+ Sales by Company-operated restaurantsQ3 2023
+ Sales by Company-operated restaurantsQ2 2023
+ Sales by Company-operated restaurantsQ1 2023)
÷ Accounts and notes receivable
= (2,474,100 + 2,556,200 + 2,487,000 + 2,224,300)
÷ 2,488,000 = 3.92
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. receivables turnover ratio improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
Payables Turnover
McDonald’s Corp., payables turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Company-operated restaurant expenses | 2,074,700) | 2,135,000) | 2,091,300) | 1,923,100) | 1,872,300) | 1,779,600) | 1,769,800) | 1,959,200) | 2,100,300) | 2,108,400) | 2,021,000) | 1,817,600) | 1,903,700) | 1,876,300) | 1,448,400) | 1,752,800) | 1,939,600) | 1,967,700) | 1,967,100) | 1,886,200) | ||||||
| Accounts payable | 1,102,900) | 862,400) | 806,600) | 811,800) | 980,200) | 794,800) | 739,400) | 718,600) | 1,006,800) | 772,600) | 730,900) | 670,000) | 741,300) | 689,000) | 538,400) | 671,900) | 988,200) | 849,500) | 796,800) | 823,600) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 7.46 | 9.30 | 9.50 | 9.05 | 7.53 | 9.57 | 10.74 | 11.40 | 7.99 | 10.16 | 10.42 | 10.52 | 9.42 | 10.18 | 13.20 | 11.35 | 7.85 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 12.08 | 10.21 | 16.06 | 9.72 | 10.94 | 9.49 | 9.76 | 9.86 | 9.77 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 6.14 | 6.83 | 9.11 | 8.52 | 6.82 | 7.52 | 6.54 | 8.32 | 6.91 | 6.29 | 6.98 | 9.91 | 9.25 | 7.99 | 19.44 | 15.68 | 12.16 | — | — | — | ||||||
| Carnival Corp. & plc | 12.26 | 13.01 | 13.26 | 12.76 | 11.20 | 10.78 | 8.94 | 7.97 | 5.84 | 5.24 | 6.92 | 10.41 | 13.21 | 15.39 | 6.97 | 14.70 | 17.08 | 18.09 | 15.15 | 14.44 | ||||||
| Chipotle Mexican Grill Inc. | 36.86 | 34.04 | 42.59 | 36.87 | 35.61 | 38.60 | 39.82 | 36.05 | 35.79 | 32.44 | 38.26 | 34.83 | 40.52 | 30.59 | 28.88 | 35.06 | 38.37 | — | — | — | ||||||
| Starbucks Corp. | 16.92 | 17.11 | 17.49 | 18.12 | 16.57 | 15.70 | 17.03 | 16.81 | 17.06 | 17.36 | 17.82 | 17.44 | 18.50 | 21.71 | 19.54 | 17.80 | 15.99 | 16.22 | 16.53 | 16.25 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Payables turnover
= (Company-operated restaurant expensesQ4 2023
+ Company-operated restaurant expensesQ3 2023
+ Company-operated restaurant expensesQ2 2023
+ Company-operated restaurant expensesQ1 2023)
÷ Accounts payable
= (2,074,700 + 2,135,000 + 2,091,300 + 1,923,100)
÷ 1,102,900 = 7.46
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. payables turnover ratio decreased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Working Capital Turnover
McDonald’s Corp., working capital turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current assets | 7,986,400) | 6,850,000) | 4,945,400) | 6,798,700) | 5,424,200) | 5,740,800) | 4,919,300) | 4,656,400) | 7,148,500) | 6,795,900) | 5,701,200) | 5,467,900) | 6,243,200) | 6,736,100) | 6,609,400) | 7,556,900) | 3,557,900) | 3,604,900) | 3,915,400) | 4,964,400) | ||||||
| Less: Current liabilities | 6,859,000) | 4,002,700) | 3,673,700) | 4,624,700) | 3,802,100) | 3,486,100) | 3,480,100) | 4,234,600) | 4,020,000) | 5,095,600) | 3,934,800) | 4,579,800) | 6,181,200) | 6,280,200) | 7,246,100) | 3,987,800) | 3,621,000) | 4,275,600) | 3,240,000) | 3,379,600) | ||||||
| Working capital | 1,127,400) | 2,847,300) | 1,271,700) | 2,174,000) | 1,622,100) | 2,254,700) | 1,439,200) | 421,800) | 3,128,500) | 1,700,300) | 1,766,400) | 888,100) | 62,000) | 455,900) | (636,700) | 3,569,100) | (63,100) | (670,700) | 675,400) | 1,584,800) | ||||||
| Sales by Company-operated restaurants | 2,474,100) | 2,556,200) | 2,487,000) | 2,224,300) | 2,208,400) | 2,124,800) | 2,112,800) | 2,302,400) | 2,538,800) | 2,598,400) | 2,488,700) | 2,161,500) | 2,233,300) | 2,286,400) | 1,593,700) | 2,025,800) | 2,363,300) | 2,416,600) | 2,400,400) | 2,240,500) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 8.64 | 3.33 | 7.11 | 3.99 | 5.39 | 4.03 | 6.64 | 23.54 | 3.13 | 5.58 | 5.19 | 9.32 | 131.28 | 18.14 | — | 2.58 | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 1.51 | 1.25 | 1.41 | 1.31 | 1.22 | 1.17 | 1.13 | 1.10 | 0.99 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 5.77 | 3.65 | 2.82 | 2.77 | 2.33 | 4.14 | 3.16 | 2.32 | 1.59 | 1.07 | 1.02 | 0.74 | 0.77 | 1.03 | 1.50 | 2.83 | 3.37 | — | — | — | ||||||
| Carnival Corp. & plc | — | — | — | — | — | — | — | — | — | — | 0.10 | 0.22 | 2.98 | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 16.73 | 16.40 | 16.17 | 24.45 | 34.00 | 32.42 | 37.95 | 29.78 | 14.86 | 10.78 | 11.18 | 10.14 | 10.01 | 14.20 | 13.16 | 13.89 | 13.77 | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | 18.11 | 205.59 | 50.26 | 48.92 | 51.17 | — | — | — | — | 14.17 | — | 11.24 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Working capital turnover
= (Sales by Company-operated restaurantsQ4 2023
+ Sales by Company-operated restaurantsQ3 2023
+ Sales by Company-operated restaurantsQ2 2023
+ Sales by Company-operated restaurantsQ1 2023)
÷ Working capital
= (2,474,100 + 2,556,200 + 2,487,000 + 2,224,300)
÷ 1,127,400 = 8.64
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. working capital turnover ratio deteriorated from Q2 2023 to Q3 2023 but then improved from Q3 2023 to Q4 2023 exceeding Q2 2023 level. |
Average Inventory Processing Period
McDonald’s Corp., average inventory processing period calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 155.76 | 168.52 | 146.30 | 142.62 | 141.94 | 175.32 | 183.32 | 165.10 | 144.74 | 156.70 | 159.38 | 155.54 | 136.62 | 158.76 | 166.87 | 195.07 | 154.59 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 2 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Carnival Corp. & plc | 13 | 12 | 12 | 13 | 13 | 15 | 19 | 23 | 28 | 33 | 33 | 22 | 15 | 12 | 10 | 12 | 12 | 14 | 15 | 14 | ||||||
| Chipotle Mexican Grill Inc. | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | ||||||
| Starbucks Corp. | 25 | 28 | 29 | 31 | 33 | 33 | 31 | 28 | 28 | 29 | 30 | 29 | 31 | 31 | 28 | 27 | 29 | 30 | 29 | 28 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 155.76 = 2
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 (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | 3.86 | 3.46 | 2.94 | 5.43 | 4.24 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | 106 | 124 | 67 | 86 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 9 | 9 | 11 | 10 | 9 | 8 | 10 | 9 | 9 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 56 | 61 | 53 | 41 | 48 | 52 | 56 | 47 | 45 | 62 | 66 | 38 | 28 | 35 | 18 | 17 | 41 | — | — | — | ||||||
| Carnival Corp. & plc | 9 | 9 | 9 | 13 | 12 | 14 | 22 | 28 | 47 | 156 | 560 | 110 | 18 | 13 | 13 | 7 | 8 | 8 | 7 | 8 | ||||||
| Chipotle Mexican Grill Inc. | 4 | 3 | 2 | 3 | 5 | 3 | 4 | 4 | 5 | 4 | 4 | 4 | 6 | 4 | 4 | 4 | 5 | — | — | — | ||||||
| Starbucks Corp. | 12 | 12 | 13 | 13 | 13 | 13 | 12 | 12 | 12 | 12 | 13 | 14 | 14 | 13 | 13 | 12 | 12 | 11 | 10 | 10 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.92 = 93
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. number of days of receivables outstanding improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
Operating Cycle
McDonald’s Corp., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 2 | — | — | — | ||||||
| Average receivable collection period | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | 106 | 124 | 67 | 86 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 95 | 89 | 91 | 90 | 91 | 78 | 72 | 64 | 73 | 72 | 74 | 78 | 98 | 108 | 126 | 69 | 88 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Carnival Corp. & plc | 22 | 21 | 21 | 26 | 25 | 29 | 41 | 51 | 75 | 189 | 593 | 132 | 33 | 25 | 23 | 19 | 20 | 22 | 22 | 22 | ||||||
| Chipotle Mexican Grill Inc. | 6 | 5 | 4 | 5 | 7 | 5 | 6 | 6 | 7 | 6 | 6 | 6 | 8 | 6 | 6 | 6 | 7 | — | — | — | ||||||
| Starbucks Corp. | 37 | 40 | 42 | 44 | 46 | 46 | 43 | 40 | 40 | 41 | 43 | 43 | 45 | 44 | 41 | 39 | 41 | 41 | 39 | 38 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 93 = 95
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. operating cycle improved from Q2 2023 to Q3 2023 but then deteriorated significantly from Q3 2023 to Q4 2023. |
Average Payables Payment Period
McDonald’s Corp., average payables payment period calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 7.46 | 9.30 | 9.50 | 9.05 | 7.53 | 9.57 | 10.74 | 11.40 | 7.99 | 10.16 | 10.42 | 10.52 | 9.42 | 10.18 | 13.20 | 11.35 | 7.85 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 49 | 39 | 38 | 40 | 48 | 38 | 34 | 32 | 46 | 36 | 35 | 35 | 39 | 36 | 28 | 32 | 46 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 30 | 36 | 23 | 38 | 33 | 38 | 37 | 37 | 37 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 59 | 53 | 40 | 43 | 54 | 49 | 56 | 44 | 53 | 58 | 52 | 37 | 39 | 46 | 19 | 23 | 30 | — | — | — | ||||||
| Carnival Corp. & plc | 30 | 28 | 28 | 29 | 33 | 34 | 41 | 46 | 62 | 70 | 53 | 35 | 28 | 24 | 52 | 25 | 21 | 20 | 24 | 25 | ||||||
| Chipotle Mexican Grill Inc. | 10 | 11 | 9 | 10 | 10 | 9 | 9 | 10 | 10 | 11 | 10 | 10 | 9 | 12 | 13 | 10 | 10 | — | — | — | ||||||
| Starbucks Corp. | 22 | 21 | 21 | 20 | 22 | 23 | 21 | 22 | 21 | 21 | 20 | 21 | 20 | 17 | 19 | 21 | 23 | 23 | 22 | 22 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.46 = 49
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. number of days of payables outstanding increased from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |
Cash Conversion Cycle
McDonald’s Corp., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 2 | — | — | — | ||||||
| Average receivable collection period | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | 106 | 124 | 67 | 86 | — | — | — | ||||||
| Average payables payment period | 49 | 39 | 38 | 40 | 48 | 38 | 34 | 32 | 46 | 36 | 35 | 35 | 39 | 36 | 28 | 32 | 46 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 46 | 50 | 53 | 50 | 43 | 40 | 38 | 32 | 27 | 36 | 39 | 43 | 59 | 72 | 98 | 37 | 42 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Carnival Corp. & plc | -8 | -7 | -7 | -3 | -8 | -5 | 0 | 5 | 13 | 119 | 540 | 97 | 5 | 1 | -29 | -6 | -1 | 2 | -2 | -3 | ||||||
| Chipotle Mexican Grill Inc. | -4 | -6 | -5 | -5 | -3 | -4 | -3 | -4 | -3 | -5 | -4 | -4 | -1 | -6 | -7 | -4 | -3 | — | — | — | ||||||
| Starbucks Corp. | 15 | 19 | 21 | 24 | 24 | 23 | 22 | 18 | 19 | 20 | 23 | 22 | 25 | 27 | 22 | 18 | 18 | 18 | 17 | 16 | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q4 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 93 – 49 = 46
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. cash conversion cycle improved from Q2 2023 to Q3 2023 and from Q3 2023 to Q4 2023. |