McDonald’s Corporation (MCD)

Days of inventory on hand (DOH)

		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
Inventory turnover		92.43	87.37	102.98	102.43	86.70	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
DOH	days	3.95	4.18	3.54	3.56	4.21	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 92.43
= 3.95

The days of inventory on hand (DOH) for McDonald’s Corporation show fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH ranged from a low of 3.54 days on June 30, 2024, to a high of 4.78 days on December 31, 2021. The trend indicates some variability in managing inventory levels efficiently.

Overall, McDonald’s Corporation has maintained its inventory levels at an average DOH of around 4 days during this period. This suggests that the company has effectively managed its inventory to meet demand without excessive stockpiling. However, the slight fluctuations in the DOH indicate that the company may have experienced some challenges in optimizing its inventory management processes.

It is important for McDonald’s to continue monitoring its DOH to ensure that inventory levels are aligned with sales trends and to avoid potential risks such as obsolescence or excessive carrying costs. Maintaining an optimal balance between inventory levels and customer demand is key to efficient operations and profitability in the fast-food industry.