McDonald’s Corporation (MCD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	25,493,700	23,182,600	23,222,900	19,207,800	21,364,400
Property, plant and equipment	US$ in thousands	24,907,600	23,773,600	24,720,600	24,958,200	24,160,000
Fixed asset turnover		1.02	0.98	0.94	0.77	0.88

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $25,493,700K ÷ $24,907,600K
= 1.02

The fixed asset turnover ratio for McDonald's Corp has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of utilizing its fixed assets to generate revenue. The ratio increased from 0.87 in 2019 to 1.02 in 2023, reflecting the company's ability to generate more revenue for each dollar invested in fixed assets.

This improvement suggests that McDonald's has been effectively managing and utilizing its fixed assets to drive sales and enhance operational performance. A higher fixed asset turnover ratio is generally indicative of better operational efficiency and asset utilization, which can lead to increased profitability and shareholder value.

Overall, the upward trend in McDonald's fixed asset turnover ratio demonstrates the company's ability to efficiently utilize its fixed assets to drive revenue growth and operational performance. However, it is important to continuously monitor this ratio to ensure sustained efficiency in asset management and operational effectiveness.