What is McDonald's debt to equity ratio? (2024)

What is McDonald's debt to equity ratio?

McDonald's Debt to Equity Ratio: -8.359 for Dec. 31, 2023

Why is McDonald's debt-to-equity ratio negative?

what does negative Total Equity means in McDonald's balance sheet? It means that their liabilities exceed their total assets. Usually it means that a company has accumulated losses over time, but that's just one explanation.

What is the debt to asset ratio of McDonald's?

McDonald's's operated at median total debt / total assets of 96.7% from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, McDonald's's total debt / total assets peaked in December 2019 at 100.1%. McDonald's's total debt / total assets hit its 5-year low in December 2021 of 91.6%.

What is a good ratio for debt to equity?

Generally, a good debt to equity ratio is around 1 to 1.5. However, the ideal debt to equity ratio will vary depending on the industry, as some industries use more debt financing than others.

Does Mcdonalds have high debt?

What Is McDonald's Net Debt? As you can see below, McDonald's had US$35.7b of debt in March 2021, down from US$38.8b a year prior. However, it does have US$3.03b in cash, offsetting this, leading to net debt of about US$32.7b. The debt-to-equity ratio at 0.68 is above average from the industry average of 0.56.

What is the debt level of McDonald's?

Analysis. McDonald's's total debt for fiscal years ending December 2019 to 2023 averaged 50.063 billion. McDonald's's operated at median total debt of 49.353 billion from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, McDonald's's total debt peaked in December 2023 at 53.153 billion.

What is a really bad debt-to-equity ratio?

What is a bad debt-to-equity ratio? When the ratio is more around 5, 6 or 7, that's a much higher level of debt, and the bank will pay attention to that. “It doesn't mean the company has a problem, but you have to look at why their debt load is so high,” says Lemieux.

Is McDonald's financially stable?

McDonald's has the Financial Strength Rank of 5.

The debt burden that the company has as measured by its Interest Coverage (current year).

Why is McDonald's in debt?

The Bottom Line. McDonald's enterprise value has gone up significantly. This is because of a large increase in debt, which was used to pay for billions of dollars in share repurchases and billions more in dividends paid out to investors. It does not, however, mean that McDonald's is over-capitalized or in trouble.

What is a good debt-to-equity ratio for food industry?

There is typically a range of ideal debt-to-equity ratios. This ideal range varies depending on what industry your business is in. According to data from 2018 about the restaurant industry, 0.85 is considered to be a high debt-to-equity ratio, while 0.56 was considered to be average, and 0.03 was considered to be low.

What is Apple's debt ratio?

31, 2023.

Is 0 a good debt-to-equity ratio?

While this may sound like an attractive financial position, it's not necessarily always good. On the positive side, a zero debt-to-equity ratio can mean that a company has a strong financial position, is not burdened with debt payments, and has greater flexibility in its financial management.

What is too high for debt to ratio?

Key takeaways

Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%. Any debt-to-income ratio above 43% is considered to be too much debt.

Why is McDonald's losing money?

The company's chief financial officer said that international sales will continue to decline in the current quarter, under pressure from the conflict in the Middle East and weak demand in China.

Is McDonald's losing profit?

McDonald's annual net income/loss for 2023 was $8.469B, a 37.09% increase from 2022.

What is McDonald's biggest expense?

McDonald's reported total operating costs and expenses amounting to 13.8 billion U.S. dollars during the 2023 financial year. Company-operated restaurant expenses, including food and paper, payroll and employee benefits, and occupancy and other operating expenses, accounted for the largest sum of the company's costs.

Is Mcdonalds richer than Burger King?

McDonald's: $37 billion in system-wide U.S. sales. Starbucks: $13 billion in system-wide U.S. sales. Subway: $10.8 billion in system-wide U.S. sales. Burger King: $10 billion in system-wide U.S. sales.

What is McDonald's profit ratio?

Current and historical gross margin, operating margin and net profit margin for McDonald's (MCD) over the last 10 years. Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. McDonald's net profit margin as of December 31, 2023 is 33.22%.

What is the leverage ratio of McDonald's?

Analysis. McDonald's's financial leverage for fiscal years ending December 2019 to 2023 averaged -8.9x. McDonald's's operated at median financial leverage of -8.4x from fiscal years ending December 2019 to 2023.

Is 0.5 a good debt-to-equity ratio?

Generally, a lower ratio is better, as it implies that the company is in less debt and is less risky for lenders and investors. A debt-to-equity ratio of 0.5 or below is considered good.

How much debt is healthy?

Ideally, financial experts like to see a DTI of no more than 15 to 20 percent of your net income. For example, a family with a $250 car payment and $100 of monthly credit card payments, and $2,500 net income per month would have a DTI of 14 percent ($350/$2,500 = 0.14 or 14%).

What does debt-to-equity ratio tell you about a company?

The debt-to-equity (D/E) ratio compares a company's total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt. D/E ratios vary by industry and are best used to compare direct competitors or to measure change in the company's reliance on debt over time.

Is McDonald's growing or Shrinking?

McDonald's annual revenue for 2023 was $25.494B, a 9.97% increase from 2022. McDonald's annual revenue for 2022 was $23.183B, a 0.17% decline from 2021. McDonald's annual revenue for 2021 was $23.223B, a 20.9% increase from 2020.

Is McDonald's a buy sell or hold?

McDonald's Corp.'s market capitalization is $191.93 B by 721.00 M shares outstanding. Is McDonald's stock a Buy, Sell or Hold? McDonald's stock has received a consensus rating of buy. The average rating score is Baa1 and is based on 81 buy ratings, 16 hold ratings, and 0 sell ratings.

Is McDonald's a good long term investment?

McDonald's not only has a strong track record of increasing its dividend for 47 consecutive years, but it has also made generous increases; in just 10 years, its dividend has doubled.