Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

McDonald’s Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	8,468,800)	6,177,400)	7,545,200)	4,730,500)	6,025,400)
Depreciation and amortization	1,978,200)	1,870,600)	1,868,100)	1,751,400)	1,617,900)
Deferred income taxes	(686,400)	(345,700)	(428,300)	6,400)	149,700)
Share-based compensation	175,200)	166,700)	139,200)	92,400)	109,600)
Net (gain) loss on sale of restaurant and other businesses	(103,200)	732,700)	(97,800)	(28,200)	(128,200)
Other	(112,700)	(570,400)	(339,100)	(75,200)	49,200)
Charges and credits	1,251,100)	1,853,900)	1,142,100)	1,746,800)	1,798,200)
Accounts receivable	(161,000)	(264,100)	309,900)	(6,800)	27,000)
Inventories, prepaid expenses and other current assets	16,700)	5,600)	(62,200)	(68,600)	128,800)
Accounts payable	50,400)	31,300)	225,000)	(137,500)	(26,800)
Income taxes	(220,300)	(546,700)	(302,500)	(43,600)	173,400)
Other accrued liabilities	206,200)	129,300)	284,000)	44,400)	(3,900)
Changes in working capital items	(108,000)	(644,600)	454,200)	(212,100)	298,500)
Adjustments to reconcile to cash provided by operations	1,143,100)	1,209,300)	1,596,300)	1,534,700)	2,096,700)
Cash provided by operations	9,611,900)	7,386,700)	9,141,500)	6,265,200)	8,122,100)
Capital expenditures	(2,357,400)	(1,899,200)	(2,040,000)	(1,640,800)	(2,393,700)
Purchases of restaurant businesses	(441,200)	(807,000)	(374,200)	(66,100)	(540,900)
Sales of restaurant and other businesses	195,300)	445,900)	196,200)	76,300)	340,800)
Sales of property	94,900)	38,900)	106,200)	27,400)	151,200)
Other	(676,100)	(456,700)	(53,900)	57,400)	(628,500)
Cash used for investing activities	(3,184,500)	(2,678,100)	(2,165,700)	(1,545,800)	(3,071,100)
Net short-term borrowings	212,800)	25,500)	15,100)	(893,100)	799,200)
Long-term financing issuances	5,221,100)	3,374,500)	1,154,400)	5,543,000)	4,499,000)
Long-term financing repayments	(2,441,100)	(2,202,400)	(2,240,000)	(2,411,700)	(2,061,900)
Treasury stock purchases	(3,054,300)	(3,896,000)	(845,500)	(907,800)	(4,976,200)
Common stock dividends	(4,532,800)	(4,168,200)	(3,918,600)	(3,752,900)	(3,581,900)
Proceeds from stock option exercises	259,800)	248,200)	285,700)	295,500)	350,500)
Other	(39,600)	38,200)	(46,700)	(122,000)	(23,500)
Cash used for financing activities	(4,374,100)	(6,580,200)	(5,595,600)	(2,249,000)	(4,994,800)
Effect of exchange rates on cash and equivalents	(57,800)	(253,800)	(120,100)	80,200)	(23,700)
Cash and equivalents increase (decrease)	1,995,500)	(2,125,400)	1,260,100)	2,550,600)	32,500)
Cash and equivalents at beginning of year	2,583,800)	4,709,200)	3,449,100)	898,500)	866,000)
Cash and equivalents at end of year	4,579,300)	2,583,800)	4,709,200)	3,449,100)	898,500)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Cash flow statement item	Description	The company
Cash provided by operations	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	McDonald’s Corp. cash provided by operations decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Cash used for investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	McDonald’s Corp. cash used for investing activities decreased from 2021 to 2022 and from 2022 to 2023.
Cash used for financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	McDonald’s Corp. cash used for financing activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

McDonald’s Corp. (NYSE:MCD)

Cash Flow Statement