McDonald’s Corporation (MCD)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	25,920,000	25,494,000	23,182,600	23,222,900	19,207,800
Property, plant and equipment	US$ in thousands	25,295,000	24,908,000	23,773,600	24,720,600	24,958,200
Fixed asset turnover		1.02	1.02	0.98	0.94	0.77

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,920,000K ÷ $25,295,000K
= 1.02

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. In the case of McDonald’s Corporation, we observe an increasing trend in the fixed asset turnover ratio over the years.

Starting at 0.77 in December 2020, the ratio has steadily improved to 0.94 by December 2021, further increasing to 0.98 in December 2022. The trend continues positively with a ratio of 1.02 in both December 2023 and 2024.

This indicates that McDonald’s has become more efficient in utilizing its fixed assets to generate sales revenue over the years. A higher fixed asset turnover ratio implies that the company is effectively utilizing its property, plant, and equipment to drive sales and profitability.

Overall, the increasing trend in McDonald’s fixed asset turnover ratio reflects the company's improving operational efficiency and effectiveness in leveraging its fixed assets to drive revenue growth.