Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Solvency Ratios 
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

McDonald’s Corp., solvency ratios (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt Ratios
Debt to equity
Debt to capital 1.15 1.14 1.15 1.14 1.15 1.16 1.18 1.20 1.23 1.23 1.21 1.15 1.19 1.20 1.25 1.26 1.29 1.32 1.31 1.32 1.35 1.26 1.25
Debt to assets 0.70 0.72 0.70 0.70 0.72 0.71 0.71 0.71 0.72 0.70 0.67 0.66 0.67 0.68 0.70 0.71 0.75 0.78 0.77 0.72 0.72 0.71 0.71
Financial leverage
Coverage Ratios
Interest coverage 7.95 8.19 8.60 8.73 8.82 8.73 7.84 7.48 7.44 7.64 8.43 8.70 8.38 7.89 6.37 6.04 6.32 6.39 7.77 8.15

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. McDonald’s Corp. debt to capital ratio improved from Q1 2024 to Q2 2024 but then deteriorated significantly from Q2 2024 to Q3 2024.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. McDonald’s Corp. debt to assets ratio deteriorated from Q1 2024 to Q2 2024 but then improved from Q2 2024 to Q3 2024 not reaching Q1 2024 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. McDonald’s Corp. interest coverage ratio deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.

Debt to Equity

McDonald’s Corp., debt to equity calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 596 604 2,192 524 500 500 900 2,244 2,689 4,087 1,106 59
Long-term debt, excluding current maturities 38,990 38,524 36,764 37,153 37,275 35,710 36,604 35,904 34,866 34,577 33,989 35,623 34,628 34,923 34,823 35,197 35,143 34,676 38,047 34,118 32,850 32,654 32,892
Total debt 39,586 38,524 37,368 39,345 37,275 35,710 37,128 35,904 34,866 34,577 33,989 35,623 35,128 35,423 35,723 37,440 37,832 38,762 39,153 34,177 32,850 32,654 32,892
 
Shareholders’ equity (deficit) (5,177) (4,824) (4,833) (4,707) (4,855) (4,999) (5,776) (6,003) (6,566) (6,370) (5,991) (4,601) (5,675) (5,808) (7,236) (7,825) (8,472) (9,463) (9,293) (8,210) (8,599) (6,809) (6,551)
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Airbnb Inc. 0.23 0.25 0.25 0.24 0.22 0.39 0.38 0.36 0.36 0.38 0.42 0.42 0.45 0.58 0.63
Booking Holdings Inc. 11.29 4.49 2.50 2.37 2.23 1.77 1.99 2.54 2.90 2.46 2.40 2.90 2.23 1.45 1.43 1.63 1.24
Chipotle Mexican Grill Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Starbucks Corp.

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q3 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 39,586 ÷ -5,177 =

2 Click competitor name to see calculations.


Debt to Capital

McDonald’s Corp., debt to capital calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 596 604 2,192 524 500 500 900 2,244 2,689 4,087 1,106 59
Long-term debt, excluding current maturities 38,990 38,524 36,764 37,153 37,275 35,710 36,604 35,904 34,866 34,577 33,989 35,623 34,628 34,923 34,823 35,197 35,143 34,676 38,047 34,118 32,850 32,654 32,892
Total debt 39,586 38,524 37,368 39,345 37,275 35,710 37,128 35,904 34,866 34,577 33,989 35,623 35,128 35,423 35,723 37,440 37,832 38,762 39,153 34,177 32,850 32,654 32,892
Shareholders’ equity (deficit) (5,177) (4,824) (4,833) (4,707) (4,855) (4,999) (5,776) (6,003) (6,566) (6,370) (5,991) (4,601) (5,675) (5,808) (7,236) (7,825) (8,472) (9,463) (9,293) (8,210) (8,599) (6,809) (6,551)
Total capital 34,409 33,700 32,535 34,639 32,420 30,711 31,352 29,900 28,300 28,207 27,998 31,022 29,453 29,615 28,488 29,616 29,360 29,299 29,859 25,967 24,251 25,846 26,341
Solvency Ratio
Debt to capital1 1.15 1.14 1.15 1.14 1.15 1.16 1.18 1.20 1.23 1.23 1.21 1.15 1.19 1.20 1.25 1.26 1.29 1.32 1.31 1.32 1.35 1.26 1.25
Benchmarks
Debt to Capital, Competitors2
Airbnb Inc. 0.19 0.20 0.20 0.20 0.18 0.28 0.27 0.26 0.26 0.27 0.30 0.29 0.31 0.37 0.39
Booking Holdings Inc. 1.29 1.34 1.32 1.24 1.05 1.05 0.92 0.82 0.71 0.70 0.69 0.64 0.67 0.72 0.74 0.71 0.71 0.74 0.69 0.59 0.59 0.62 0.55
Chipotle Mexican Grill Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Starbucks Corp. 2.04 2.18 2.35 2.08 2.18 2.22 2.39 2.37 2.34 2.21 2.34 1.57 1.87 2.09 1.99 1.91 2.05 2.16 2.38 2.26 1.63 2.21 1.46

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q3 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 39,586 ÷ 34,409 = 1.15

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. McDonald’s Corp. debt to capital ratio improved from Q1 2024 to Q2 2024 but then deteriorated significantly from Q2 2024 to Q3 2024.

Debt to Assets

McDonald’s Corp., debt to assets calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings and current maturities of long-term debt 596 604 2,192 524 500 500 900 2,244 2,689 4,087 1,106 59
Long-term debt, excluding current maturities 38,990 38,524 36,764 37,153 37,275 35,710 36,604 35,904 34,866 34,577 33,989 35,623 34,628 34,923 34,823 35,197 35,143 34,676 38,047 34,118 32,850 32,654 32,892
Total debt 39,586 38,524 37,368 39,345 37,275 35,710 37,128 35,904 34,866 34,577 33,989 35,623 35,128 35,423 35,723 37,440 37,832 38,762 39,153 34,177 32,850 32,654 32,892
 
Total assets 56,172 53,801 53,513 56,147 52,089 50,442 52,014 50,436 48,502 49,248 50,878 53,854 52,727 51,893 51,103 52,627 50,699 49,939 50,568 47,511 45,805 46,200 46,467
Solvency Ratio
Debt to assets1 0.70 0.72 0.70 0.70 0.72 0.71 0.71 0.71 0.72 0.70 0.67 0.66 0.67 0.68 0.70 0.71 0.75 0.78 0.77 0.72 0.72 0.71 0.71
Benchmarks
Debt to Assets, Competitors2
Airbnb Inc. 0.09 0.08 0.08 0.10 0.09 0.09 0.10 0.12 0.12 0.10 0.12 0.14 0.15 0.13 0.16
Booking Holdings Inc. 0.58 0.59 0.61 0.58 0.54 0.53 0.48 0.49 0.42 0.39 0.44 0.46 0.47 0.51 0.58 0.55 0.53 0.55 0.48 0.40 0.40 0.40 0.38
Chipotle Mexican Grill Inc. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Starbucks Corp. 0.52 0.53 0.51 0.52 0.54 0.54 0.53 0.54 0.54 0.55 0.51 0.47 0.50 0.52 0.53 0.56 0.58 0.51 0.42 0.58 0.53 0.52 0.46

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q3 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 39,586 ÷ 56,172 = 0.70

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. McDonald’s Corp. debt to assets ratio deteriorated from Q1 2024 to Q2 2024 but then improved from Q2 2024 to Q3 2024 not reaching Q1 2024 level.

Financial Leverage

McDonald’s Corp., financial leverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Total assets 56,172 53,801 53,513 56,147 52,089 50,442 52,014 50,436 48,502 49,248 50,878 53,854 52,727 51,893 51,103 52,627 50,699 49,939 50,568 47,511 45,805 46,200 46,467
Shareholders’ equity (deficit) (5,177) (4,824) (4,833) (4,707) (4,855) (4,999) (5,776) (6,003) (6,566) (6,370) (5,991) (4,601) (5,675) (5,808) (7,236) (7,825) (8,472) (9,463) (9,293) (8,210) (8,599) (6,809) (6,551)
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Airbnb Inc. 2.61 3.29 3.11 2.53 2.35 4.19 3.78 2.88 2.90 3.63 3.60 2.87 3.05 4.56 3.91
Booking Holdings Inc. 23.47 9.12 6.01 6.12 5.12 3.83 4.21 4.98 4.97 4.47 4.51 5.23 4.66 3.61 3.60 4.05 3.23
Chipotle Mexican Grill Inc. 2.49 2.40 2.50 2.63 2.74 2.73 2.84 2.93 2.93 3.04 3.03 2.90 2.87 2.91 2.93 2.96 3.12 3.15 3.11 3.03 3.04 3.03 3.12
Starbucks Corp.

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q3 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 56,172 ÷ -5,177 =

2 Click competitor name to see calculations.


Interest Coverage

McDonald’s Corp., interest coverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Selected Financial Data (US$ in millions)
Net income 2,255 2,022 1,929 2,039 2,317 2,310 1,802 1,903 1,982 1,188 1,104 1,639 2,150 2,219 1,537 1,377 1,763 484 1,107 1,572 1,608 1,517 1,328
Add: Income tax expense 588 533 480 476 606 506 465 436 555 221 437 469 542 157 416 453 455 165 338 455 544 491 503
Add: Interest expense 381 373 372 360 341 330 330 323 306 291 287 296 294 297 300 309 310 319 280 283 281 284 274
Earnings before interest and tax (EBIT) 3,224 2,928 2,781 2,875 3,264 3,147 2,597 2,662 2,842 1,700 1,829 2,403 2,985 2,673 2,253 2,139 2,527 968 1,725 2,310 2,433 2,292 2,105
Solvency Ratio
Interest coverage1 7.95 8.19 8.60 8.73 8.82 8.73 7.84 7.48 7.44 7.64 8.43 8.70 8.38 7.89 6.37 6.04 6.32 6.39 7.77 8.15
Benchmarks
Interest Coverage, Competitors2
Airbnb Inc. 33.76 30.48 29.67 26.33 166.72 145.45 96.66 83.88 81.06 58.89 40.98 0.31
Booking Holdings Inc. 7.16 7.79 7.63 7.11 8.82 9.14 10.82 11.03 11.24 7.95 3.94 5.39 3.50 3.03 3.59 2.59 6.44 12.20 17.17 23.40
Starbucks Corp. 10.50 10.61 11.07 10.82 10.22 10.01 9.66 9.76 12.25 12.95 13.08 12.40 8.49 3.76 2.78 3.66 5.23 12.29 14.35 14.49 15.69 15.50 18.04

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Q3 2024 Calculation
Interest coverage = (EBITQ3 2024 + EBITQ2 2024 + EBITQ1 2024 + EBITQ4 2023) ÷ (Interest expenseQ3 2024 + Interest expenseQ2 2024 + Interest expenseQ1 2024 + Interest expenseQ4 2023)
= (3,224 + 2,928 + 2,781 + 2,875) ÷ (381 + 373 + 372 + 360) = 7.95

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. McDonald’s Corp. interest coverage ratio deteriorated from Q1 2024 to Q2 2024 and from Q2 2024 to Q3 2024.