Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

McDonald’s Corp., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
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
Turnover Ratios
Inventory turnover 180.84 181.22 155.76 168.52 146.30 142.62 141.94 175.32 183.32 165.10 144.74 156.70 159.38 155.54 136.62 158.76 166.87 195.07 154.59
Receivables turnover 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 3.46 2.94 5.43 4.24
Payables turnover 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 10.18 13.20 11.35 7.85
Working capital turnover 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 18.14 2.58
Average No. Days
Average inventory processing period 2 2 2 2 2 3 3 2 2 2 3 2 2 2 3 2 2 2 2
Add: Average receivable collection period 89 83 93 87 89 87 88 76 70 62 70 70 72 76 95 106 124 67 86
Operating cycle 91 85 95 89 91 90 91 78 72 64 73 72 74 78 98 108 126 69 88
Less: Average payables payment period 42 41 49 39 38 40 48 38 34 32 46 36 35 35 39 36 28 32 46
Cash conversion cycle 49 44 46 50 53 50 43 40 38 32 27 36 39 43 59 72 98 37 42

Based on: 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).

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 improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. McDonald’s Corp. receivables turnover ratio improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. McDonald’s Corp. payables turnover ratio increased from Q4 2023 to Q1 2024 but then slightly decreased from Q1 2024 to Q2 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. McDonald’s Corp. number of days of receivables outstanding improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. McDonald’s Corp. operating cycle improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.
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 Q4 2023 to Q1 2024 but then slightly increased from Q1 2024 to Q2 2024.
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 improved from Q4 2023 to Q1 2024 but then deteriorated significantly from Q1 2024 to Q2 2024.

Inventory Turnover

McDonald’s Corp., inventory turnover calculation (quarterly data)

Microsoft Excel
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)
Company-owned and operated restaurant expenses 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 1,940 1,968 1,967 1,886
Inventories, at cost, not in excess of market 46 46 53 48 52 52 52 43 43 50 56 50 48 45 51 44 43 39 50 43 44 41
Short-term Activity Ratio
Inventory turnover1 180.84 181.22 155.76 168.52 146.30 142.62 141.94 175.32 183.32 165.10 144.74 156.70 159.38 155.54 136.62 158.76 166.87 195.07 154.59
Benchmarks
Inventory Turnover, Competitors2
Chipotle Mexican Grill Inc. 218.61 197.22 185.34 175.86 191.68 194.58 184.27 191.96 214.37 203.97 177.91 195.78 213.29 211.26 186.94 189.01 191.72 195.93 170.29
Starbucks Corp. 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 12.44 12.24 12.56 13.20

Based on: 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 Q2 2024 Calculation
Inventory turnover = (Company-owned and operated restaurant expensesQ2 2024 + Company-owned and operated restaurant expensesQ1 2024 + Company-owned and operated restaurant expensesQ4 2023 + Company-owned and operated restaurant expensesQ3 2023) ÷ Inventories, at cost, not in excess of market
= (2,074 + 2,035 + 2,075 + 2,135) ÷ 46 = 180.84

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 improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024.

Receivables Turnover

McDonald’s Corp., receivables turnover calculation (quarterly data)

Microsoft Excel
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)
Sales by Company-owned and operated restaurants 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 2,363 2,417 2,400 2,241
Accounts and notes receivable 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 2,224 2,005 2,055 1,993
Short-term Activity Ratio
Receivables turnover1 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 3.46 2.94 5.43 4.24
Benchmarks
Receivables Turnover, Competitors2
Airbnb Inc. 50.75 48.31 39.83 39.84 34.42 38.36 42.00 45.08 36.09 42.42 42.04
Booking Holdings Inc. 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 10.36 19.96 21.76 8.97
Chipotle Mexican Grill Inc. 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 83.86 82.63 89.64 69.36
Starbucks Corp. 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 30.15 32.97 36.32 35.04

Based on: 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 Q2 2024 Calculation
Receivables turnover = (Sales by Company-owned and operated restaurantsQ2 2024 + Sales by Company-owned and operated restaurantsQ1 2024 + Sales by Company-owned and operated restaurantsQ4 2023 + Sales by Company-owned and operated restaurantsQ3 2023) ÷ Accounts and notes receivable
= (2,461 + 2,355 + 2,474 + 2,556) ÷ 2,404 = 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 improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.

Payables Turnover

McDonald’s Corp., payables turnover calculation (quarterly data)

Microsoft Excel
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)
Company-owned and operated restaurant expenses 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 1,940 1,968 1,967 1,886
Accounts payable 949 936 1,103 862 807 812 980 795 739 719 1,007 773 731 670 741 689 538 672 988 850 797 824
Short-term Activity Ratio
Payables turnover1 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 10.18 13.20 11.35 7.85
Benchmarks
Payables Turnover, Competitors2
Booking Holdings Inc. 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 7.99 19.44 15.68 12.16
Chipotle Mexican Grill Inc. 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 30.59 28.88 35.06 38.37
Starbucks Corp. 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 15.99 16.22 16.53 16.25

Based on: 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 Q2 2024 Calculation
Payables turnover = (Company-owned and operated restaurant expensesQ2 2024 + Company-owned and operated restaurant expensesQ1 2024 + Company-owned and operated restaurant expensesQ4 2023 + Company-owned and operated restaurant expensesQ3 2023) ÷ Accounts payable
= (2,074 + 2,035 + 2,075 + 2,135) ÷ 949 = 8.77

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 Q4 2023 to Q1 2024 but then slightly decreased from Q1 2024 to Q2 2024.

Working Capital Turnover

McDonald’s Corp., working capital turnover calculation (quarterly data)

Microsoft Excel
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)
Current assets 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 3,558 3,605 3,915 4,964
Less: Current liabilities 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 3,621 4,276 3,240 3,380
Working capital 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 (63) (671) 675 1,585
 
Sales by Company-owned and operated restaurants 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 2,363 2,417 2,400 2,241
Short-term Activity Ratio
Working capital turnover1 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 18.14 2.58
Benchmarks
Working Capital Turnover, Competitors2
Airbnb Inc. 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. 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 1.03 1.50 2.83 3.37
Chipotle Mexican Grill Inc. 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 14.20 13.16 13.89 13.77
Starbucks Corp. 18.11 205.59 50.26 48.92 51.17 14.17 11.24

Based on: 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 Q2 2024 Calculation
Working capital turnover = (Sales by Company-owned and operated restaurantsQ2 2024 + Sales by Company-owned and operated restaurantsQ1 2024 + Sales by Company-owned and operated restaurantsQ4 2023 + Sales by Company-owned and operated restaurantsQ3 2023) ÷ Working capital
= (2,461 + 2,355 + 2,474 + 2,556) ÷ 295 = 33.38

2 Click competitor name to see calculations.


Average Inventory Processing Period

McDonald’s Corp., average inventory processing period calculation (quarterly data)

Microsoft Excel
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
Inventory turnover 180.84 181.22 155.76 168.52 146.30 142.62 141.94 175.32 183.32 165.10 144.74 156.70 159.38 155.54 136.62 158.76 166.87 195.07 154.59
Short-term Activity Ratio (no. days)
Average inventory processing period1 2 2 2 2 2 3 3 2 2 2 3 2 2 2 3 2 2 2 2
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 2 2
Starbucks Corp. 24 23 25 28 29 31 33 33 31 28 28 29 30 29 31 31 28 27 29 30 29 28

Based on: 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 Q2 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 180.84 = 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)

Microsoft Excel
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
Receivables turnover 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 3.46 2.94 5.43 4.24
Short-term Activity Ratio (no. days)
Average receivable collection period1 89 83 93 87 89 87 88 76 70 62 70 70 72 76 95 106 124 67 86
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Airbnb Inc. 7 8 9 9 11 10 9 8 10 9 9
Booking Holdings Inc. 62 55 56 61 53 41 48 52 56 47 45 62 66 38 28 35 18 17 41
Chipotle Mexican Grill Inc. 3 3 4 3 2 3 5 3 4 4 5 4 4 4 6 4 4 4 5
Starbucks Corp. 11 12 12 12 13 13 13 13 12 12 12 12 13 14 14 13 13 12 12 11 10 10

Based on: 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 Q2 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. McDonald’s Corp. number of days of receivables outstanding improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.

Operating Cycle

McDonald’s Corp., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
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
Average inventory processing period 2 2 2 2 2 3 3 2 2 2 3 2 2 2 3 2 2 2 2
Average receivable collection period 89 83 93 87 89 87 88 76 70 62 70 70 72 76 95 106 124 67 86
Short-term Activity Ratio
Operating cycle1 91 85 95 89 91 90 91 78 72 64 73 72 74 78 98 108 126 69 88
Benchmarks
Operating Cycle, Competitors2
Chipotle Mexican Grill Inc. 5 5 6 5 4 5 7 5 6 6 7 6 6 6 8 6 6 6 7
Starbucks Corp. 35 35 37 40 42 44 46 46 43 40 40 41 43 43 45 44 41 39 41 41 39 38

Based on: 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 Q2 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. McDonald’s Corp. operating cycle improved from Q4 2023 to Q1 2024 but then slightly deteriorated from Q1 2024 to Q2 2024 not reaching Q4 2023 level.

Average Payables Payment Period

McDonald’s Corp., average payables payment period calculation (quarterly data)

Microsoft Excel
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
Payables turnover 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 10.18 13.20 11.35 7.85
Short-term Activity Ratio (no. days)
Average payables payment period1 42 41 49 39 38 40 48 38 34 32 46 36 35 35 39 36 28 32 46
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Booking Holdings Inc. 64 54 59 53 40 43 54 49 56 44 53 58 52 37 39 46 19 23 30
Chipotle Mexican Grill Inc. 10 10 10 11 9 10 10 9 9 10 10 11 10 10 9 12 13 10 10
Starbucks Corp. 21 20 22 21 21 20 22 23 21 22 21 21 20 21 20 17 19 21 23 23 22 22

Based on: 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 Q2 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.77 = 42

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 Q4 2023 to Q1 2024 but then slightly increased from Q1 2024 to Q2 2024.

Cash Conversion Cycle

McDonald’s Corp., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
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
Average inventory processing period 2 2 2 2 2 3 3 2 2 2 3 2 2 2 3 2 2 2 2
Average receivable collection period 89 83 93 87 89 87 88 76 70 62 70 70 72 76 95 106 124 67 86
Average payables payment period 42 41 49 39 38 40 48 38 34 32 46 36 35 35 39 36 28 32 46
Short-term Activity Ratio
Cash conversion cycle1 49 44 46 50 53 50 43 40 38 32 27 36 39 43 59 72 98 37 42
Benchmarks
Cash Conversion Cycle, Competitors2
Chipotle Mexican Grill Inc. -5 -5 -4 -6 -5 -5 -3 -4 -3 -4 -3 -5 -4 -4 -1 -6 -7 -4 -3
Starbucks Corp. 14 15 15 19 21 24 24 23 22 18 19 20 23 22 25 27 22 18 18 18 17 16

Based on: 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 Q2 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 2 + 8942 = 49

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 improved from Q4 2023 to Q1 2024 but then deteriorated significantly from Q1 2024 to Q2 2024.