McDonald’s Corporation (MCD)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	25,493,700	25,014,000	24,193,900	23,414,800	23,182,600	23,265,200	23,594,400	23,763,900	23,222,900	22,527,600	21,744,400	19,618,000	19,207,800	19,243,000	19,327,200	20,975,500	21,285,200	21,099,200	20,966,300	20,910,400
Property, plant and equipment	US$ in thousands	24,907,600	23,924,100	24,101,500	23,858,500	23,773,600	22,698,300	23,334,500	24,434,700	24,720,600	24,428,700	24,620,200	24,549,800	24,958,200	24,218,300	23,830,000	23,595,900	24,160,000	23,325,300	23,504,200	23,283,500
Fixed asset turnover		1.02	1.05	1.00	0.98	0.98	1.02	1.01	0.97	0.94	0.92	0.88	0.80	0.77	0.79	0.81	0.89	0.88	0.90	0.89	0.90

December 31, 2023 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.

Analyzing the fixed asset turnover of McDonald's Corp over the last eight quarters shows some fluctuation. In Q4 2023, the fixed asset turnover was 1.02, which indicates that the company generated $1.02 in revenue for every dollar invested in fixed assets. This ratio decreased slightly in Q3 2023 to 1.05 before dropping to 1.00 in Q2 2023, and further to 0.98 in Q1 2023. The ratio then remained relatively stable around 0.98-1.02 in the preceding quarters.

Overall, the trend in McDonald's fixed asset turnover highlights some variability in the company's efficiency in utilizing its fixed assets to drive revenue. Further analysis would be needed to understand the specific factors contributing to these fluctuations and assess the company's overall asset management performance.