McDonald’s Corporation (MCD)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,176,000	4,775,100	4,362,800	4,245,900	3,996,400
Inventory	US$ in thousands	56,000	53,000	52,000	55,600	51,100
Inventory turnover		92.43	90.10	83.90	76.37	78.21

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,176,000K ÷ $56,000K
= 92.43

McDonald's Corporation's inventory turnover has shown a consistent upward trend over the past five years, starting at 78.21 in December 2020 and reaching 92.43 by December 2024. This indicates that the company is managing its inventory efficiently and effectively converting its inventory into sales at a faster rate. A higher inventory turnover ratio generally suggests that the company is able to sell its products quickly and minimize holding costs. Overall, the increasing trend in inventory turnover for McDonald's Corporation reflects strong operational efficiency and effectiveness in managing its inventory levels.