McDonald’s Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	55,182)	56,147)	50,436)	53,854)	52,627)
Less: Goodwill	3,145)	3,040)	2,900)	2,783)	2,773)
Total assets (adjusted)	52,037)	53,106)	47,535)	51,072)	49,854)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(3,797)	(4,707)	(6,003)	(4,601)	(7,825)
Less: Goodwill	3,145)	3,040)	2,900)	2,783)	2,773)
Shareholders’ equity (deficit) (adjusted)	(6,942)	(7,747)	(8,904)	(7,384)	(10,598)

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McDonald’s Corp., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total Asset Turnover
Reported total asset turnover	0.47	0.45	0.46	0.43	0.36
Adjusted total asset turnover	0.50	0.48	0.49	0.45	0.39
Financial Leverage
Reported financial leverage	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—
Adjusted ROE	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	14.90%	15.08%	12.25%	14.01%	8.99%
Adjusted ROA	15.80%	15.95%	13.00%	14.77%	9.49%

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	McDonald’s Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	McDonald’s Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues	25,920)	25,494)	23,183)	23,223)	19,208)
Total assets	55,182)	56,147)	50,436)	53,854)	52,627)
Activity Ratio
Total asset turnover¹	0.47	0.45	0.46	0.43	0.36
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	25,920)	25,494)	23,183)	23,223)	19,208)
Adjusted total assets	52,037)	53,106)	47,535)	51,072)	49,854)
Activity Ratio
Adjusted total asset turnover²	0.50	0.48	0.49	0.45	0.39

2024 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 25,920 ÷ 55,182 = 0.47

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 25,920 ÷ 52,037 = 0.50

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	McDonald’s Corp. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	55,182)	56,147)	50,436)	53,854)	52,627)
Shareholders’ equity (deficit)	(3,797)	(4,707)	(6,003)	(4,601)	(7,825)
Solvency Ratio
Financial leverage¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	52,037)	53,106)	47,535)	51,072)	49,854)
Adjusted shareholders’ equity (deficit)	(6,942)	(7,747)	(8,904)	(7,384)	(10,598)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 55,182 ÷ -3,797 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 52,037 ÷ -6,942 = —

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	8,223)	8,469)	6,177)	7,545)	4,731)
Shareholders’ equity (deficit)	(3,797)	(4,707)	(6,003)	(4,601)	(7,825)
Profitability Ratio
ROE¹	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	8,223)	8,469)	6,177)	7,545)	4,731)
Adjusted shareholders’ equity (deficit)	(6,942)	(7,747)	(8,904)	(7,384)	(10,598)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—

2024 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 8,223 ÷ -3,797 = —

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 8,223 ÷ -6,942 = —

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income	8,223)	8,469)	6,177)	7,545)	4,731)
Total assets	55,182)	56,147)	50,436)	53,854)	52,627)
Profitability Ratio
ROA¹	14.90%	15.08%	12.25%	14.01%	8.99%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	8,223)	8,469)	6,177)	7,545)	4,731)
Adjusted total assets	52,037)	53,106)	47,535)	51,072)	49,854)
Profitability Ratio
Adjusted ROA²	15.80%	15.95%	13.00%	14.77%	9.49%

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 8,223 ÷ 55,182 = 14.90%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 8,223 ÷ 52,037 = 15.80%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	McDonald’s Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

McDonald’s Corp. (NYSE:MCD)

Analysis of Goodwill and Intangible Assets