Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
McDonald’s Corp., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.19 | 1.16 | 1.43 | 1.78 | 1.01 | |
| Quick ratio | 0.90 | 1.03 | 1.24 | 1.64 | 0.90 | |
| Cash ratio | 0.28 | 0.67 | 0.68 | 1.17 | 0.56 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | McDonald’s Corp. current ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | McDonald’s Corp. quick ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | McDonald’s Corp. cash ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Current Ratio
McDonald’s Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 4,599) | 7,986) | 5,424) | 7,149) | 6,243) | |
| Current liabilities | 3,861) | 6,859) | 3,802) | 4,020) | 6,181) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.19 | 1.16 | 1.43 | 1.78 | 1.01 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.69 | 1.66 | 1.86 | 1.95 | 1.73 | |
| Booking Holdings Inc. | 1.31 | 1.28 | 1.86 | 2.10 | 3.56 | |
| Chipotle Mexican Grill Inc. | 1.52 | 1.57 | 1.28 | 1.58 | 1.73 | |
| Starbucks Corp. | 0.75 | 0.78 | 0.77 | 1.20 | 1.06 | |
| Current Ratio, Sector | ||||||
| Consumer Services | 1.28 | 1.25 | 1.46 | 1.71 | 1.60 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.22 | 1.20 | 1.15 | 1.25 | 1.18 | |
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
Current ratio = Current assets ÷ Current liabilities
= 4,599 ÷ 3,861 = 1.19
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | McDonald’s Corp. current ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Quick Ratio
McDonald’s Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 1,085) | 4,579) | 2,584) | 4,709) | 3,449) | |
| Accounts and notes receivable | 2,383) | 2,488) | 2,115) | 1,872) | 2,110) | |
| Total quick assets | 3,468) | 7,067) | 4,699) | 6,582) | 5,559) | |
| Current liabilities | 3,861) | 6,859) | 3,802) | 4,020) | 6,181) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.90 | 1.03 | 1.24 | 1.64 | 0.90 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.64 | 1.62 | 1.83 | 1.91 | 1.69 | |
| Booking Holdings Inc. | 1.24 | 1.20 | 1.73 | 2.00 | 3.38 | |
| Chipotle Mexican Grill Inc. | 1.34 | 1.37 | 1.09 | 1.35 | 1.28 | |
| Starbucks Corp. | 0.52 | 0.55 | 0.48 | 0.93 | 0.75 | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 1.15 | 1.13 | 1.29 | 1.56 | 1.41 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.90 | 0.85 | 0.81 | 0.92 | 0.88 | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 3,468 ÷ 3,861 = 0.90
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | McDonald’s Corp. quick ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Cash Ratio
McDonald’s Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 1,085) | 4,579) | 2,584) | 4,709) | 3,449) | |
| Total cash assets | 1,085) | 4,579) | 2,584) | 4,709) | 3,449) | |
| Current liabilities | 3,861) | 6,859) | 3,802) | 4,020) | 6,181) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.28 | 0.67 | 0.68 | 1.17 | 0.56 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.04 | 1.01 | 1.21 | 1.31 | 1.24 | |
| Booking Holdings Inc. | 1.03 | 0.95 | 1.46 | 1.79 | 3.23 | |
| Chipotle Mexican Grill Inc. | 1.22 | 1.26 | 0.98 | 1.23 | 1.16 | |
| Starbucks Corp. | 0.39 | 0.42 | 0.35 | 0.81 | 0.63 | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.82 | 0.80 | 0.95 | 1.24 | 1.16 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.51 | 0.48 | 0.47 | 0.63 | 0.58 | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 1,085 ÷ 3,861 = 0.28
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | McDonald’s Corp. cash ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |