McDonald’s Corporation (MCD)

Days of sales outstanding (DSO)

		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
Receivables turnover		10.88	10.54	10.71	11.51	10.25	11.13	11.03	11.28	10.96	12.31	12.85	14.20	12.40	12.32	12.02	11.32	9.10	8.05	6.78	12.37
DSO	days	33.56	34.62	34.07	31.70	35.62	32.79	33.09	32.35	33.30	29.65	28.41	25.71	29.43	29.63	30.35	32.26	40.10	45.37	53.87	29.50

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.88
= 33.56

The Days of Sales Outstanding (DSO) is a key indicator used to measure how efficiently a company manages its accounts receivable. For McDonald’s Corporation, the DSO has shown a generally stable trend over the past few years.

Starting from March 31, 2020, where DSO was at 29.50 days, there was a notable increase by June 30, 2020, reaching 53.87 days, indicating a slowdown in collecting receivables. However, the DSO improved in the following quarters, with fluctuations but showing a declining trend over time.

By December 31, 2024, the DSO stood at 33.56 days, which suggests that McDonald’s has been able to maintain a reasonable balance in collecting its sales revenue within a moderate time frame. Monitoring DSO helps assess the company’s efficiency in managing its accounts receivable and collecting payments from customers, which in turn impacts cash flow and liquidity.