McDonald’s Corporation (MCD)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,775,100	4,362,800	4,245,900	3,996,400	3,747,900
Inventory	US$ in thousands	52,800	52,000	55,600	51,100	50,200
Inventory turnover		90.44	83.90	76.37	78.21	74.66

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,775,100K ÷ $52,800K
= 90.44

The inventory turnover for McDonald's Corp from 2019 to 2023 has been consistently reported as 0.00. This indicates that the company is not efficiently managing its inventory turnover, as the ratio suggests that the company is not selling its inventory effectively throughout the year. A low or zero inventory turnover ratio can imply overstocking, obsolete inventory, or a lack of demand for the products. It is essential for McDonald's Corp to improve its inventory turnover in order to optimize its working capital and enhance profitability. Further analysis and action to address the underlying reasons for this low ratio are recommended to improve operational efficiency and financial performance.