Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
McDonald’s Corp., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | McDonald’s Corp. net fixed asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | McDonald’s Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 and from 2023 to 2024. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | McDonald’s Corp. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Fixed Asset Turnover
McDonald’s Corp., net fixed asset turnover 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) | ||||||
| Revenues | 25,920) | 25,494) | 23,183) | 23,223) | 19,208) | |
| Net property and equipment, including finance lease right-of-use asset | 27,315) | 26,698) | 25,287) | 24,721) | 24,958) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.95 | 0.95 | 0.92 | 0.94 | 0.77 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 75.52 | 61.98 | 69.41 | 38.27 | 12.50 | |
| Booking Holdings Inc. | 28.53 | 27.25 | 25.55 | 13.33 | 8.99 | |
| Chipotle Mexican Grill Inc. | 4.73 | 4.55 | 4.43 | 4.27 | 3.78 | |
| Starbucks Corp. | 4.17 | 4.87 | 4.92 | 4.56 | 3.77 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | 2.75 | 2.76 | 2.59 | 2.27 | 1.74 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 3.22 | 3.50 | 3.47 | 3.31 | 3.37 | |
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 fixed asset turnover = Revenues ÷ Net property and equipment, including finance lease right-of-use asset
= 25,920 ÷ 27,315 = 0.95
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | McDonald’s Corp. net fixed asset turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
McDonald’s Corp., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Revenues | 25,920) | 25,494) | 23,183) | 23,223) | 19,208) | |
| Net property and equipment, including finance lease right-of-use asset | 27,315) | 26,698) | 25,287) | 24,721) | 24,958) | |
| Operating lease right-of-use asset, net | 11,319) | 11,724) | 11,052) | 13,552) | 13,828) | |
| Net property and equipment, including finance lease right-of-use asset (including operating lease, right-of-use asset) | 38,634) | 38,422) | 36,339) | 38,273) | 38,786) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.67 | 0.66 | 0.64 | 0.61 | 0.50 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | 38.15 | 35.54 | 32.43 | 13.98 | 5.16 | |
| Booking Holdings Inc. | 17.07 | 14.35 | 13.01 | 8.31 | 5.29 | |
| Chipotle Mexican Grill Inc. | 1.77 | 1.72 | 1.64 | 1.54 | 1.38 | |
| Starbucks Corp. | 2.02 | 2.28 | 2.21 | 1.99 | 1.64 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | 1.67 | 1.66 | 1.55 | 1.29 | 0.99 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.51 | 2.68 | 2.66 | 2.51 | 2.57 | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Net property and equipment, including finance lease right-of-use asset (including operating lease, right-of-use asset)
= 25,920 ÷ 38,634 = 0.67
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | McDonald’s Corp. net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2022 to 2023 and from 2023 to 2024. |
Total Asset Turnover
McDonald’s Corp., total asset turnover 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) | ||||||
| Revenues | 25,920) | 25,494) | 23,183) | 23,223) | 19,208) | |
| Total assets | 55,182) | 56,147) | 50,436) | 53,854) | 52,627) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.47 | 0.45 | 0.46 | 0.43 | 0.36 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 0.53 | 0.48 | 0.52 | 0.44 | 0.32 | |
| Booking Holdings Inc. | 0.86 | 0.88 | 0.67 | 0.46 | 0.31 | |
| Chipotle Mexican Grill Inc. | 1.23 | 1.23 | 1.25 | 1.13 | 1.00 | |
| Starbucks Corp. | 1.15 | 1.22 | 1.15 | 0.93 | 0.80 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Services | 0.75 | 0.74 | 0.71 | 0.59 | 0.49 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.94 | 0.97 | 0.96 | 0.88 | 0.84 | |
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 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | McDonald’s Corp. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Equity Turnover
McDonald’s Corp., equity turnover 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) | ||||||
| Revenues | 25,920) | 25,494) | 23,183) | 23,223) | 19,208) | |
| Shareholders’ equity (deficit) | (3,797) | (4,707) | (6,003) | (4,601) | (7,825) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.32 | 1.21 | 1.51 | 1.25 | 1.16 | |
| Booking Holdings Inc. | — | — | 6.14 | 1.77 | 1.39 | |
| Chipotle Mexican Grill Inc. | 3.09 | 3.22 | 3.65 | 3.29 | 2.96 | |
| Starbucks Corp. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Consumer Services | — | — | — | 23.06 | — | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 3.24 | 3.86 | 4.21 | 3.74 | 4.82 | |
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
Equity turnover = Revenues ÷ Shareholders’ equity (deficit)
= 25,920 ÷ -3,797 = —
2 Click competitor name to see calculations.