Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

McDonald’s Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Short-term borrowings and current maturities of long-term debt	—)	2,192)	—)	—)	2,244)
Accounts payable	1,029)	1,103)	980)	1,007)	741)
Current operating lease liability	625)	643)	640)	706)	702)
Current finance lease liability	11)	46)	22)	—)	—)
Current lease liability	636)	688)	661)	706)	702)
Income taxes	361)	705)	275)	361)	741)
Other taxes	224)	268)	255)	237)	227)
Accrued interest	482)	469)	393)	363)	388)
Accrued payroll and other liabilities	1,129)	1,434)	1,237)	1,347)	1,138)
Current liabilities	3,861)	6,859)	3,802)	4,020)	6,181)
Long-term debt, excluding current maturities	38,424)	37,153)	35,904)	35,623)	35,197)
Long-term operating lease liability	11,118)	11,528)	10,834)	13,021)	13,321)
Long-term finance lease liability	1,770)	1,530)	1,300)	—)	—)
Long-term lease liability	12,888)	13,058)	12,134)	13,021)	13,321)
Long-term income taxes	344)	363)	792)	1,897)	1,971)
Deferred revenues, initial franchise fees	778)	790)	758)	738)	702)
Other long-term liabilities	771)	950)	1,052)	1,081)	1,054)
Deferred income taxes	1,914)	1,681)	1,998)	2,076)	2,026)
Long-term liabilities	55,119)	53,995)	52,637)	54,435)	54,271)
Total liabilities	58,980)	60,854)	56,439)	58,455)	60,452)
Preferred stock, no par value; issued: none	—)	—)	—)	—)	—)
Common stock, $.01 par value	17)	17)	17)	17)	17)
Additional paid-in capital	9,281)	8,893)	8,547)	8,232)	7,904)
Retained earnings	66,834)	63,480)	59,544)	57,535)	53,908)
Accumulated other comprehensive loss	(2,553)	(2,456)	(2,487)	(2,574)	(2,587)
Common stock in treasury, at cost	(77,376)	(74,640)	(71,624)	(67,810)	(67,066)
Shareholders’ equity (deficit)	(3,797)	(4,707)	(6,003)	(4,601)	(7,825)
Total liabilities and shareholders’ equity (deficit)	55,183)	56,147)	50,436)	53,854)	52,627)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Balance sheet item	Description	The company
Current liabilities	Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.	McDonald’s Corp. current liabilities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Long-term liabilities	Amount of obligation due after one year or beyond the normal operating cycle, if longer.	McDonald’s Corp. long-term liabilities increased from 2022 to 2023 and from 2023 to 2024.
Total liabilities	Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.	McDonald’s Corp. total liabilities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Shareholders’ equity (deficit)	Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.	McDonald’s Corp. shareholders’ equity (deficit) increased from 2022 to 2023 and from 2023 to 2024.

McDonald’s Corp. (NYSE:MCD)

Balance Sheet: Liabilities and Stockholders’ Equity