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, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.16 | 1.43 | 1.78 | 1.01 | 0.98 | |
| Quick ratio | 1.03 | 1.24 | 1.64 | 0.90 | 0.86 | |
| Cash ratio | 0.67 | 0.68 | 1.17 | 0.56 | 0.25 |
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).
| 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 2021 to 2022 and from 2022 to 2023. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | McDonald’s Corp. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
McDonald’s Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 7,986,400) | 5,424,200) | 7,148,500) | 6,243,200) | 3,557,900) | |
| Current liabilities | 6,859,000) | 3,802,100) | 4,020,000) | 6,181,200) | 3,621,000) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.16 | 1.43 | 1.78 | 1.01 | 0.98 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.66 | 1.86 | 1.95 | 1.73 | — | |
| Booking Holdings Inc. | 1.28 | 1.86 | 2.10 | 3.56 | 1.83 | |
| Chipotle Mexican Grill Inc. | 1.57 | 1.28 | 1.58 | 1.73 | 1.61 | |
| Starbucks Corp. | 0.78 | 0.77 | 1.20 | 1.06 | 0.92 | |
| Current Ratio, Sector | ||||||
| Consumer Services | 1.25 | 1.46 | 1.71 | 1.60 | 1.27 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.20 | 1.15 | 1.25 | 1.18 | 1.10 | |
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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,986,400 ÷ 6,859,000 = 1.16
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 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
McDonald’s Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 4,579,300) | 2,583,800) | 4,709,200) | 3,449,100) | 898,500) | |
| Accounts and notes receivable | 2,488,000) | 2,115,000) | 1,872,400) | 2,110,300) | 2,224,200) | |
| Total quick assets | 7,067,300) | 4,698,800) | 6,581,600) | 5,559,400) | 3,122,700) | |
| Current liabilities | 6,859,000) | 3,802,100) | 4,020,000) | 6,181,200) | 3,621,000) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.03 | 1.24 | 1.64 | 0.90 | 0.86 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.63 | 1.83 | 1.92 | 1.70 | — | |
| Booking Holdings Inc. | 1.20 | 1.73 | 2.00 | 3.38 | 1.68 | |
| Chipotle Mexican Grill Inc. | 1.37 | 1.09 | 1.35 | 1.28 | 1.44 | |
| Starbucks Corp. | 0.55 | 0.48 | 0.93 | 0.75 | 0.59 | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 1.13 | 1.30 | 1.56 | 1.42 | 1.06 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.85 | 0.81 | 0.92 | 0.88 | 0.79 | |
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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,067,300 ÷ 6,859,000 = 1.03
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 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
McDonald’s Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and equivalents | 4,579,300) | 2,583,800) | 4,709,200) | 3,449,100) | 898,500) | |
| Total cash assets | 4,579,300) | 2,583,800) | 4,709,200) | 3,449,100) | 898,500) | |
| Current liabilities | 6,859,000) | 3,802,100) | 4,020,000) | 6,181,200) | 3,621,000) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.67 | 0.68 | 1.17 | 0.56 | 0.25 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.01 | 1.21 | 1.31 | 1.24 | — | |
| Booking Holdings Inc. | 0.95 | 1.46 | 1.79 | 3.23 | 1.36 | |
| Chipotle Mexican Grill Inc. | 1.26 | 0.98 | 1.23 | 1.16 | 1.32 | |
| Starbucks Corp. | 0.42 | 0.35 | 0.81 | 0.63 | 0.45 | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.80 | 0.95 | 1.24 | 1.16 | 0.75 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.57 | 0.55 | 0.71 | 0.69 | 0.57 | |
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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,579,300 ÷ 6,859,000 = 0.67
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 2021 to 2022 and from 2022 to 2023. |