Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
McDonald’s Corp., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2024-12-31), 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | McDonald’s Corp. inventory turnover ratio deteriorated from Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | McDonald’s Corp. receivables turnover ratio deteriorated from Q2 2024 to Q3 2024 but then improved from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | McDonald’s Corp. payables turnover ratio increased from Q2 2024 to Q3 2024 but then decreased significantly from Q3 2024 to Q4 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | McDonald’s Corp. number of days of payables outstanding decreased from Q2 2024 to Q3 2024 but then increased from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | McDonald’s Corp. cash conversion cycle deteriorated from Q2 2024 to Q3 2024 but then improved from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |
Inventory Turnover
McDonald’s Corp., inventory turnover calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Company-owned and operated restaurant expenses | 1,978) | 2,248) | 2,074) | 2,035) | 2,075) | 2,135) | 2,091) | 1,923) | 1,872) | 1,780) | 1,770) | 1,959) | 2,100) | 2,108) | 2,021) | 1,818) | 1,904) | 1,876) | 1,448) | 1,753) | ||||||
| Inventories, at cost, not in excess of market | 56) | 54) | 46) | 46) | 53) | 48) | 52) | 52) | 52) | 43) | 43) | 50) | 56) | 50) | 48) | 45) | 51) | 44) | 43) | 39) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 148.84 | 156.14 | 180.84 | 181.22 | 155.76 | 168.52 | 146.30 | 142.62 | 141.94 | 175.32 | 183.32 | 165.10 | 144.74 | 156.70 | 159.38 | 155.54 | 136.62 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 169.51 | 161.15 | 218.61 | 197.22 | 185.34 | 175.86 | 191.68 | 194.58 | 184.27 | 191.96 | 214.37 | 203.97 | 177.91 | 195.78 | 213.29 | 211.26 | 186.94 | — | — | — | ||||||
| Starbucks Corp. | 14.89 | 14.25 | 15.15 | 16.09 | 14.46 | 12.95 | 12.54 | 11.70 | 10.97 | 10.97 | 11.79 | 13.24 | 12.89 | 12.64 | 12.25 | 12.45 | 11.90 | 11.80 | 13.06 | 13.72 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Inventory turnover
= (Company-owned and operated restaurant expensesQ4 2024
+ Company-owned and operated restaurant expensesQ3 2024
+ Company-owned and operated restaurant expensesQ2 2024
+ Company-owned and operated restaurant expensesQ1 2024)
÷ Inventories, at cost, not in excess of market
= (1,978 + 2,248 + 2,074 + 2,035)
÷ 56 = 148.84
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | McDonald’s Corp. inventory turnover ratio deteriorated from Q2 2024 to Q3 2024 and from Q3 2024 to Q4 2024. |
Receivables Turnover
McDonald’s Corp., receivables turnover calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Sales by Company-owned and operated restaurants | 2,310) | 2,656) | 2,461) | 2,355) | 2,474) | 2,556) | 2,487) | 2,224) | 2,208) | 2,125) | 2,113) | 2,302) | 2,539) | 2,598) | 2,489) | 2,162) | 2,233) | 2,286) | 1,594) | 2,026) | ||||||
| Accounts and notes receivable | 2,383) | 2,460) | 2,404) | 2,238) | 2,488) | 2,247) | 2,194) | 2,076) | 2,115) | 1,890) | 1,837) | 1,674) | 1,872) | 1,829) | 1,808) | 1,734) | 2,110) | 2,392) | 2,853) | 1,695) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 4.10 | 4.04 | 4.10 | 4.41 | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | 3.86 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 75.52 | 61.94 | 60.03 | 58.52 | 48.38 | 46.60 | 41.69 | 47.07 | 52.17 | 53.27 | 43.30 | 53.74 | 53.67 | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 7.42 | 6.32 | 5.87 | 6.68 | 6.57 | 5.98 | 6.90 | 8.87 | 7.67 | 7.01 | 6.51 | 7.77 | 8.07 | 5.93 | 5.57 | 9.64 | 12.85 | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 78.59 | 117.86 | 109.32 | 113.59 | 85.44 | 134.08 | 152.24 | 136.37 | 80.79 | 118.06 | 97.41 | 87.64 | 75.77 | 94.54 | 90.40 | 92.26 | 57.27 | — | — | — | ||||||
| Starbucks Corp. | 29.80 | 31.83 | 32.90 | 31.49 | 30.38 | 30.71 | 28.67 | 28.30 | 27.44 | 27.91 | 31.27 | 29.45 | 30.92 | 29.76 | 27.09 | 26.09 | 26.62 | 27.31 | 28.33 | 29.70 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Receivables turnover
= (Sales by Company-owned and operated restaurantsQ4 2024
+ Sales by Company-owned and operated restaurantsQ3 2024
+ Sales by Company-owned and operated restaurantsQ2 2024
+ Sales by Company-owned and operated restaurantsQ1 2024)
÷ Accounts and notes receivable
= (2,310 + 2,656 + 2,461 + 2,355)
÷ 2,383 = 4.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | McDonald’s Corp. receivables turnover ratio deteriorated from Q2 2024 to Q3 2024 but then improved from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |
Payables Turnover
McDonald’s Corp., payables turnover calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Company-owned and operated restaurant expenses | 1,978) | 2,248) | 2,074) | 2,035) | 2,075) | 2,135) | 2,091) | 1,923) | 1,872) | 1,780) | 1,770) | 1,959) | 2,100) | 2,108) | 2,021) | 1,818) | 1,904) | 1,876) | 1,448) | 1,753) | ||||||
| Accounts payable | 1,029) | 944) | 949) | 936) | 1,103) | 862) | 807) | 812) | 980) | 795) | 739) | 719) | 1,007) | 773) | 731) | 670) | 741) | 689) | 538) | 672) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 8.10 | 8.93 | 8.77 | 8.91 | 7.46 | 9.30 | 9.50 | 9.05 | 7.53 | 9.57 | 10.74 | 11.40 | 7.99 | 10.16 | 10.42 | 10.52 | 9.42 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Booking Holdings Inc. | 6.21 | 5.67 | 5.70 | 6.73 | 6.14 | 6.83 | 9.11 | 8.52 | 6.82 | 7.52 | 6.54 | 8.32 | 6.91 | 6.29 | 6.98 | 9.91 | 9.25 | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 39.38 | 36.30 | 38.20 | 38.02 | 36.86 | 34.04 | 42.59 | 36.87 | 35.61 | 38.60 | 39.82 | 36.05 | 35.79 | 32.44 | 38.26 | 34.83 | 40.52 | — | — | — | ||||||
| Starbucks Corp. | 16.59 | 16.66 | 17.76 | 18.13 | 16.92 | 17.11 | 17.49 | 18.12 | 16.57 | 15.70 | 17.03 | 16.81 | 17.06 | 17.36 | 17.82 | 17.44 | 18.50 | 21.71 | 19.54 | 17.80 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Payables turnover
= (Company-owned and operated restaurant expensesQ4 2024
+ Company-owned and operated restaurant expensesQ3 2024
+ Company-owned and operated restaurant expensesQ2 2024
+ Company-owned and operated restaurant expensesQ1 2024)
÷ Accounts payable
= (1,978 + 2,248 + 2,074 + 2,035)
÷ 1,029 = 8.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | McDonald’s Corp. payables turnover ratio increased from Q2 2024 to Q3 2024 but then decreased significantly from Q3 2024 to Q4 2024. |
Working Capital Turnover
McDonald’s Corp., working capital turnover calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 4,599) | 4,912) | 4,205) | 4,057) | 7,986) | 6,850) | 4,945) | 6,799) | 5,424) | 5,741) | 4,919) | 4,656) | 7,149) | 6,796) | 5,701) | 5,468) | 6,243) | 6,736) | 6,609) | 7,557) | ||||||
| Less: Current liabilities | 3,861) | 6,308) | 3,910) | 4,886) | 6,859) | 4,003) | 3,674) | 4,625) | 3,802) | 3,486) | 3,480) | 4,235) | 4,020) | 5,096) | 3,935) | 4,580) | 6,181) | 6,280) | 7,246) | 3,988) | ||||||
| Working capital | 738) | (1,396) | 295) | (829) | 1,127) | 2,847) | 1,272) | 2,174) | 1,622) | 2,255) | 1,439) | 422) | 3,129) | 1,700) | 1,766) | 888) | 62) | 456) | (637) | 3,569) | ||||||
| Sales by Company-owned and operated restaurants | 2,310) | 2,656) | 2,461) | 2,355) | 2,474) | 2,556) | 2,487) | 2,224) | 2,208) | 2,125) | 2,113) | 2,302) | 2,539) | 2,598) | 2,489) | 2,162) | 2,233) | 2,286) | 1,594) | 2,026) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 13.25 | — | 33.38 | — | 8.64 | 3.33 | 7.11 | 3.99 | 5.39 | 4.03 | 6.64 | 23.54 | 3.13 | 5.58 | 5.19 | 9.32 | 131.28 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 1.58 | 1.55 | 1.64 | 1.64 | 1.51 | 1.25 | 1.41 | 1.31 | 1.22 | 1.17 | 1.13 | 1.10 | 0.99 | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 4.90 | 5.99 | 7.26 | 6.04 | 5.77 | 3.65 | 2.82 | 2.77 | 2.33 | 4.14 | 3.16 | 2.32 | 1.59 | 1.07 | 1.02 | 0.74 | 0.77 | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 18.49 | 17.10 | 14.35 | 15.74 | 16.73 | 16.40 | 16.17 | 24.45 | 34.00 | 32.42 | 37.95 | 29.78 | 14.86 | 10.78 | 11.18 | 10.14 | 10.01 | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | 18.11 | 205.59 | 50.26 | 48.92 | 51.17 | — | — | — | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Working capital turnover
= (Sales by Company-owned and operated restaurantsQ4 2024
+ Sales by Company-owned and operated restaurantsQ3 2024
+ Sales by Company-owned and operated restaurantsQ2 2024
+ Sales by Company-owned and operated restaurantsQ1 2024)
÷ Working capital
= (2,310 + 2,656 + 2,461 + 2,355)
÷ 738 = 13.25
2 Click competitor name to see calculations.
Average Inventory Processing Period
McDonald’s Corp., average inventory processing period calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 148.84 | 156.14 | 180.84 | 181.22 | 155.76 | 168.52 | 146.30 | 142.62 | 141.94 | 175.32 | 183.32 | 165.10 | 144.74 | 156.70 | 159.38 | 155.54 | 136.62 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | ||||||
| Starbucks Corp. | 25 | 26 | 24 | 23 | 25 | 28 | 29 | 31 | 33 | 33 | 31 | 28 | 28 | 29 | 30 | 29 | 31 | 31 | 28 | 27 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 148.84 = 2
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
McDonald’s Corp., average receivable collection period calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 4.10 | 4.04 | 4.10 | 4.41 | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | 3.86 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 89 | 90 | 89 | 83 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Airbnb Inc. | 5 | 6 | 6 | 6 | 8 | 8 | 9 | 8 | 7 | 7 | 8 | 7 | 7 | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 49 | 58 | 62 | 55 | 56 | 61 | 53 | 41 | 48 | 52 | 56 | 47 | 45 | 62 | 66 | 38 | 28 | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 5 | 3 | 3 | 3 | 4 | 3 | 2 | 3 | 5 | 3 | 4 | 4 | 5 | 4 | 4 | 4 | 6 | — | — | — | ||||||
| Starbucks Corp. | 12 | 11 | 11 | 12 | 12 | 12 | 13 | 13 | 13 | 13 | 12 | 12 | 12 | 12 | 13 | 14 | 14 | 13 | 13 | 12 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.10 = 89
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
McDonald’s Corp., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | — | — | — | ||||||
| Average receivable collection period | 89 | 90 | 89 | 83 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 91 | 92 | 91 | 85 | 95 | 89 | 91 | 90 | 91 | 78 | 72 | 64 | 73 | 72 | 74 | 78 | 98 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 7 | 5 | 5 | 5 | 6 | 5 | 4 | 5 | 7 | 5 | 6 | 6 | 7 | 6 | 6 | 6 | 8 | — | — | — | ||||||
| Starbucks Corp. | 37 | 37 | 35 | 35 | 37 | 40 | 42 | 44 | 46 | 46 | 43 | 40 | 40 | 41 | 43 | 43 | 45 | 44 | 41 | 39 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 2 + 89 = 91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
McDonald’s Corp., average payables payment period calculation (quarterly data)
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 8.10 | 8.93 | 8.77 | 8.91 | 7.46 | 9.30 | 9.50 | 9.05 | 7.53 | 9.57 | 10.74 | 11.40 | 7.99 | 10.16 | 10.42 | 10.52 | 9.42 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 45 | 41 | 42 | 41 | 49 | 39 | 38 | 40 | 48 | 38 | 34 | 32 | 46 | 36 | 35 | 35 | 39 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Booking Holdings Inc. | 59 | 64 | 64 | 54 | 59 | 53 | 40 | 43 | 54 | 49 | 56 | 44 | 53 | 58 | 52 | 37 | 39 | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 9 | 10 | 10 | 10 | 10 | 11 | 9 | 10 | 10 | 9 | 9 | 10 | 10 | 11 | 10 | 10 | 9 | — | — | — | ||||||
| Starbucks Corp. | 22 | 22 | 21 | 20 | 22 | 21 | 21 | 20 | 22 | 23 | 21 | 22 | 21 | 21 | 20 | 21 | 20 | 17 | 19 | 21 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.10 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | McDonald’s Corp. number of days of payables outstanding decreased from Q2 2024 to Q3 2024 but then increased from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |
Cash Conversion Cycle
McDonald’s Corp., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2024 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | 3 | — | — | — | ||||||
| Average receivable collection period | 89 | 90 | 89 | 83 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | 95 | — | — | — | ||||||
| Average payables payment period | 45 | 41 | 42 | 41 | 49 | 39 | 38 | 40 | 48 | 38 | 34 | 32 | 46 | 36 | 35 | 35 | 39 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 46 | 51 | 49 | 44 | 46 | 50 | 53 | 50 | 43 | 40 | 38 | 32 | 27 | 36 | 39 | 43 | 59 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | -2 | -5 | -5 | -5 | -4 | -6 | -5 | -5 | -3 | -4 | -3 | -4 | -3 | -5 | -4 | -4 | -1 | — | — | — | ||||||
| Starbucks Corp. | 15 | 15 | 14 | 15 | 15 | 19 | 21 | 24 | 24 | 23 | 22 | 18 | 19 | 20 | 23 | 22 | 25 | 27 | 22 | 18 | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
1 Q4 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 89 – 45 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | McDonald’s Corp. cash conversion cycle deteriorated from Q2 2024 to Q3 2024 but then improved from Q3 2024 to Q4 2024 exceeding Q2 2024 level. |