McDonald’s Corporation (MCD)

Days of inventory on hand (DOH)

		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
Inventory turnover		87.03	94.38	83.79	84.60	83.90	102.18	102.20	88.27	76.37	84.66	85.41	88.43	77.93	86.50	91.01	97.57	74.66	138.85	130.95	139.78
DOH	days	4.19	3.87	4.36	4.31	4.35	3.57	3.57	4.14	4.78	4.31	4.27	4.13	4.68	4.22	4.01	3.74	4.89	2.63	2.79	2.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 87.03
= 4.19

Based on the data provided, McDonald's Corp's days of inventory on hand (DOH) fluctuated significantly over the past eight quarters. In Q1 2022, the DOH stood at 13.79 days, indicating that on average, the company held enough inventory to last for approximately 13.79 days. This was a fairly efficient level of inventory management.

However, in Q2 2022, the DOH increased to 32.72 days, suggesting a notable increase in the length of time it took for McDonald's to turn its inventory into sales. This may indicate potential issues with inventory control or overly conservative purchasing practices during that period.

The following quarter, in Q3 2022, the DOH further increased to 67.01 days, reflecting a significant slowdown in inventory turnover. This prolonged holding period may lead to increased holding costs and inventory obsolescence, negatively impacting the company's profitability.

In Q4 2023, the DOH data is missing, making it challenging to assess the most recent inventory management performance. However, the fluctuating trend observed in the previous quarters highlights the importance of closely monitoring and optimizing inventory levels to ensure efficient operations and cost management within McDonald's supply chain.