Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

McDonald’s Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Activity Ratio
Total Asset Turnover
Reported 0.47 0.45 0.46 0.43 0.36
Adjusted 0.50 0.48 0.48 0.45 0.38
Solvency Ratios
Debt to Equity
Reported — — — — —
Adjusted — — — — —
Debt to Capital
Reported 1.10 1.13 1.19 1.15 1.26
Adjusted 1.10 1.11 1.13 1.09 1.16
Financial Leverage
Reported — — — — —
Adjusted — — — — —
Profitability Ratios
Net Profit Margin
Reported 31.72% 33.22% 26.65% 32.49% 24.63%
Adjusted 29.11% 30.73% 25.59% 30.81% 24.28%
Return on Equity (ROE)
Reported — — — — —
Adjusted — — — — —
Return on Assets (ROA)
Reported 14.90% 15.08% 12.25% 14.01% 8.99%
Adjusted 14.60% 14.77% 12.38% 13.92% 9.26%

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).

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 debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. McDonald’s Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. McDonald’s Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted 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., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted revenues2 25,908 25,526 23,202 23,259 19,249
Adjusted total assets3 51,639 53,124 47,959 51,497 50,491
Activity Ratio
Adjusted total asset turnover4 0.50 0.48 0.48 0.45 0.38

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).

1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 25,920 ÷ 55,182 = 0.47

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 25,908 ÷ 51,639 = 0.50

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.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 40,205 40,921 37,225 35,623 37,440
Shareholders’ equity (deficit) (3,797) (4,707) (6,003) (4,601) (7,825)
Solvency Ratio
Debt to equity1 — — — — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 51,948 53,091 48,699 49,349 51,463
Adjusted shareholders’ equity (deficit)3 (4,648) (5,259) (5,725) (4,144) (7,233)
Solvency Ratio
Adjusted debt to equity4 — — — — —

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 40,205 ÷ -3,797 = —

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity (deficit)
= 51,948 ÷ -4,648 = —

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 40,205 40,921 37,225 35,623 37,440
Total capital 36,408 36,214 31,222 31,022 29,616
Solvency Ratio
Debt to capital1 1.10 1.13 1.19 1.15 1.26
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 51,948 53,091 48,699 49,349 51,463
Adjusted total capital3 47,300 47,833 42,974 45,205 44,230
Solvency Ratio
Adjusted debt to capital4 1.10 1.11 1.13 1.09 1.16

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 40,205 ÷ 36,408 = 1.10

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 51,948 ÷ 47,300 = 1.10

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. McDonald’s Corp. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted total assets2 51,639 53,124 47,959 51,497 50,491
Adjusted shareholders’ equity (deficit)3 (4,648) (5,259) (5,725) (4,144) (7,233)
Solvency Ratio
Adjusted financial leverage4 — — — — —

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 55,182 ÷ -3,797 = —

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 51,639 ÷ -4,648 = —

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Net income 8,223 8,469 6,177 7,545 4,731
Revenues 25,920 25,494 23,183 23,223 19,208
Profitability Ratio
Net profit margin1 31.72% 33.22% 26.65% 32.49% 24.63%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 7,541 7,845 5,938 7,166 4,674
Adjusted revenues3 25,908 25,526 23,202 23,259 19,249
Profitability Ratio
Adjusted net profit margin4 29.11% 30.73% 25.59% 30.81% 24.28%

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).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,223 ÷ 25,920 = 31.72%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 7,541 ÷ 25,908 = 29.11%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. McDonald’s Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 7,541 7,845 5,938 7,166 4,674
Adjusted shareholders’ equity (deficit)3 (4,648) (5,259) (5,725) (4,144) (7,233)
Profitability Ratio
Adjusted ROE4 — — — — —

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).

1 2024 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 8,223 ÷ -3,797 = —

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity (deficit). See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity (deficit)
= 100 × 7,541 ÷ -4,648 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 7,541 7,845 5,938 7,166 4,674
Adjusted total assets3 51,639 53,124 47,959 51,497 50,491
Profitability Ratio
Adjusted ROA4 14.60% 14.77% 12.38% 13.92% 9.26%

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).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,223 ÷ 55,182 = 14.90%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 7,541 ÷ 51,639 = 14.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.