Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level


Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Turnover Ratios
Inventory turnover 195.07 154.59 182.57 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63
Receivables turnover 5.43 4.24 4.70 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
Payables turnover 11.35 7.85 9.16 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
Working capital turnover 2.58 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
Average No. Days
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3
Add: Average receivable collection period 67 86 78 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29
Operating cycle 69 88 80 81 77 91 82 76 62 59 44 38 35 37 34 31 28 32
Less: Average payables payment period 32 46 40 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23
Cash conversion cycle 37 42 40 44 40 38 42 39 33 27 22 22 15 15 10 15 11 9

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp.’s receivables turnover ratio deteriorated from Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp.’s payables turnover ratio decreased from Q3 2019 to Q4 2019 but then increased from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital.

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp.’s operating cycle deteriorated from Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.
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 Q3 2019 to Q4 2019 but then decreased significantly from Q4 2019 to Q1 2020.
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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data (US$ in thousands)
Company-operated restaurant expenses 1,752,800  1,939,600  1,967,700  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 
Inventories, at cost, not in excess of market 39,100  50,200  42,600  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 
Short-term Activity Ratio
Inventory turnover1 195.07 154.59 182.57 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63
Benchmarks
Inventory Turnover, Competitors2
Starbucks Corp. 5.68 5.58 7.10 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

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Inventory turnover = (Company-operated restaurant expensesQ1 2020 + Company-operated restaurant expensesQ4 2019 + Company-operated restaurant expensesQ3 2019 + Company-operated restaurant expensesQ2 2019) ÷ Inventories, at cost, not in excess of market
= (1,752,800 + 1,939,600 + 1,967,700 + 1,967,100) ÷ 39,100 = 195.07

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data (US$ in thousands)
Sales by Company-operated restaurants 2,025,800  2,363,300  2,416,600  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 
Accounts and notes receivable 1,695,300  2,224,200  2,005,300  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 
Short-term Activity Ratio
Receivables turnover1 5.43 4.24 4.70 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
Benchmarks
Receivables Turnover, Competitors2
Booking Holdings Inc. 21.76 8.97 8.36 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
Starbucks Corp. 29.70 30.15 32.97 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

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Receivables turnover = (Sales by Company-operated restaurantsQ1 2020 + Sales by Company-operated restaurantsQ4 2019 + Sales by Company-operated restaurantsQ3 2019 + Sales by Company-operated restaurantsQ2 2019) ÷ Accounts and notes receivable
= (2,025,800 + 2,363,300 + 2,416,600 + 2,400,400) ÷ 1,695,300 = 5.43

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data (US$ in thousands)
Company-operated restaurant expenses 1,752,800  1,939,600  1,967,700  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 
Accounts payable 671,900  988,200  849,500  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 
Short-term Activity Ratio
Payables turnover1 11.35 7.85 9.16 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
Benchmarks
Payables Turnover, Competitors2
Booking Holdings Inc. 0.00 0.00 0.00 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
Starbucks Corp. 7.37 7.17 9.40 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

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Payables turnover = (Company-operated restaurant expensesQ1 2020 + Company-operated restaurant expensesQ4 2019 + Company-operated restaurant expensesQ3 2019 + Company-operated restaurant expensesQ2 2019) ÷ Accounts payable
= (1,752,800 + 1,939,600 + 1,967,700 + 1,967,100) ÷ 671,900 = 11.35

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 Q3 2019 to Q4 2019 but then increased from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data (US$ in thousands)
Current assets 7,556,900  3,557,900  3,604,900  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 
Less: Current liabilities 3,987,800  3,621,000  4,275,600  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 
Working capital 3,569,100  (63,100) (670,700) 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 
 
Sales by Company-operated restaurants 2,025,800  2,363,300  2,416,600  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 
Short-term Activity Ratio
Working capital turnover1 2.58 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
Benchmarks
Working Capital Turnover, Competitors2
Booking Holdings Inc. 2.83 3.37 3.30 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
Starbucks Corp. 14.17 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

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Working capital turnover = (Sales by Company-operated restaurantsQ1 2020 + Sales by Company-operated restaurantsQ4 2019 + Sales by Company-operated restaurantsQ3 2019 + Sales by Company-operated restaurantsQ2 2019) ÷ Working capital
= (2,025,800 + 2,363,300 + 2,416,600 + 2,400,400) ÷ 3,569,100 = 2.58

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.

Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data
Inventory turnover 195.07 154.59 182.57 177.78 196.60 161.76 203.33 180.47 180.75 177.03 207.30 211.55 217.25 215.60 144.55 153.89 147.26 139.63
Short-term Activity Ratio (no. days)
Average inventory processing period1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Starbucks Corp. 64 65 51 50 47 50 51 52 52 55 55 55 52 59 59 58 57 61 57 53 53

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 195.07 = 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)

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data
Receivables turnover 5.43 4.24 4.70 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
Short-term Activity Ratio (no. days)
Average receivable collection period1 67 86 78 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Booking Holdings Inc. 17 41 44 49 38 38 44 46 42 35 43 39 31 29 39 37 33 26
Starbucks Corp. 12 12 11 10 10 10 13 14 14 14 13 13 15 13 13 13 14 14 13 14 14

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.43 = 67

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3
Average receivable collection period 67 86 78 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29
Short-term Activity Ratio
Operating cycle1 69 88 80 81 77 91 82 76 62 59 44 38 35 37 34 31 28 32
Benchmarks
Operating Cycle, Competitors2
Starbucks Corp. 76 77 62 60 57 60 64 66 66 69 68 68 67 72 72 71 71 75 70 67 67

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 67 = 69

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data
Payables turnover 11.35 7.85 9.16 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
Short-term Activity Ratio (no. days)
Average payables payment period1 32 46 40 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23
Benchmarks (no. 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
Starbucks Corp. 50 51 39 38 39 42 34 33 34 32 29 29 28 31 30 30 30 32 29 30 28

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.35 = 32

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 Q3 2019 to Q4 2019 but then decreased significantly from Q4 2019 to Q1 2020.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 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
Selected Financial Data
Average inventory processing period 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 2 3
Average receivable collection period 67 86 78 79 75 89 80 74 60 57 42 36 33 35 31 29 26 29
Average payables payment period 32 46 40 37 37 53 40 37 29 32 22 16 20 22 24 16 17 23
Short-term Activity Ratio
Cash conversion cycle1 37 42 40 44 40 38 42 39 33 27 22 22 15 15 10 15 11 9
Benchmarks
Cash Conversion Cycle, Competitors2
Starbucks Corp. 26 26 23 22 18 18 30 33 32 37 39 39 39 41 42 41 41 43 41 37 39

Based on: 10-Q (filing date: 2020-05-07), 10-K (filing date: 2020-02-26), 10-Q (filing date: 2019-11-04), 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).

1 Q1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 6732 = 37

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 Q3 2019 to Q4 2019 but then improved from Q4 2019 to Q1 2020 exceeding Q3 2019 level.