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: 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).
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 and from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | McDonald’s Corp. total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Net Fixed Asset Turnover
McDonald’s Corp., net fixed asset turnover 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) | ||||||
| Revenues | 25,493,700) | 23,182,600) | 23,222,900) | 19,207,800) | 21,076,500) | |
| Net property and equipment, including finance lease right-of-use asset | 26,697,800) | 25,287,200) | 24,720,600) | 24,958,200) | 24,160,000) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.95 | 0.92 | 0.94 | 0.77 | 0.87 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 61.98 | 69.41 | 38.27 | 12.50 | — | |
| Booking Holdings Inc. | 27.25 | 25.55 | 13.33 | 8.99 | 20.41 | |
| Chipotle Mexican Grill Inc. | 4.55 | 4.43 | 4.27 | 3.78 | 3.83 | |
| Starbucks Corp. | 4.87 | 4.92 | 4.56 | 3.77 | 4.12 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Consumer Services | 2.76 | 2.59 | 2.27 | 1.74 | 2.08 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Discretionary | 3.50 | 3.47 | 3.31 | 3.37 | 3.71 | |
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
Net fixed asset turnover = Revenues ÷ Net property and equipment, including finance lease right-of-use asset
= 25,493,700 ÷ 26,697,800 = 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
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, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 25,493,700) | 23,182,600) | 23,222,900) | 19,207,800) | 21,076,500) | |
| Net property and equipment, including finance lease right-of-use asset | 26,697,800) | 25,287,200) | 24,720,600) | 24,958,200) | 24,160,000) | |
| Operating lease right-of-use asset, net | 11,724,200) | 11,052,100) | 13,552,000) | 13,827,700) | 13,261,200) | |
| Net property and equipment, including finance lease right-of-use asset (including operating lease, right-of-use asset) | 38,422,000) | 36,339,300) | 38,272,600) | 38,785,900) | 37,421,200) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.66 | 0.64 | 0.61 | 0.50 | 0.56 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Airbnb Inc. | 35.54 | 32.43 | 13.98 | 5.16 | — | |
| Booking Holdings Inc. | 14.35 | 13.01 | 8.31 | 5.29 | 11.09 | |
| Chipotle Mexican Grill Inc. | 1.72 | 1.64 | 1.54 | 1.38 | 1.41 | |
| Starbucks Corp. | 2.28 | 2.21 | 1.99 | 1.64 | 4.12 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Consumer Services | 1.66 | 1.55 | 1.29 | 0.99 | 1.39 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Discretionary | 2.68 | 2.66 | 2.51 | 2.57 | 3.13 | |
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
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)
= 25,493,700 ÷ 38,422,000 = 0.66
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 2021 to 2022 and from 2022 to 2023. |
Total Asset Turnover
McDonald’s Corp., total asset turnover 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) | ||||||
| Revenues | 25,493,700) | 23,182,600) | 23,222,900) | 19,207,800) | 21,076,500) | |
| Total assets | 56,146,800) | 50,435,600) | 53,854,300) | 52,626,800) | 47,510,800) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.45 | 0.46 | 0.43 | 0.36 | 0.44 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Airbnb Inc. | 0.48 | 0.52 | 0.44 | 0.32 | — | |
| Booking Holdings Inc. | 0.88 | 0.67 | 0.46 | 0.31 | 0.70 | |
| Chipotle Mexican Grill Inc. | 1.23 | 1.25 | 1.13 | 1.00 | 1.09 | |
| Starbucks Corp. | 1.22 | 1.15 | 0.93 | 0.80 | 1.38 | |
| Total Asset Turnover, Sector | ||||||
| Consumer Services | 0.74 | 0.71 | 0.59 | 0.49 | 0.73 | |
| Total Asset Turnover, Industry | ||||||
| Consumer Discretionary | 0.97 | 0.96 | 0.88 | 0.84 | 0.94 | |
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
Total asset turnover = Revenues ÷ Total assets
= 25,493,700 ÷ 56,146,800 = 0.45
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 improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Equity Turnover
McDonald’s Corp., equity turnover 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) | ||||||
| Revenues | 25,493,700) | 23,182,600) | 23,222,900) | 19,207,800) | 21,076,500) | |
| Shareholders’ equity (deficit) | (4,706,700) | (6,003,400) | (4,601,000) | (7,824,900) | (8,210,300) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Airbnb Inc. | 1.21 | 1.51 | 1.25 | 1.16 | — | |
| Booking Holdings Inc. | — | 6.14 | 1.77 | 1.39 | 2.54 | |
| Chipotle Mexican Grill Inc. | 3.22 | 3.65 | 3.29 | 2.96 | 3.32 | |
| Starbucks Corp. | — | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Consumer Services | — | — | 23.06 | — | — | |
| Equity Turnover, Industry | ||||||
| Consumer Discretionary | 3.86 | 4.21 | 3.74 | 4.82 | 5.84 | |
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
Equity turnover = Revenues ÷ Shareholders’ equity (deficit)
= 25,493,700 ÷ -4,706,700 = —
2 Click competitor name to see calculations.