McDonald’s Corporation (MCD)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		5.03	4.33	4.45	4.22	5.39
Number of days of payables	days	72.56	84.31	82.01	86.55	67.70

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.03
= 72.56

Based on the provided data, McDonald's Corporation's number of days of payables has shown some fluctuations over the past five years. Specifically, the number of days of payables was 67.70 days as of December 31, 2020, which increased to 86.55 days by December 31, 2021. Subsequently, there was a slight decrease to 82.01 days by December 31, 2022, followed by a further increase to 84.31 days by the end of 2023. However, the number of days of payables decreased to 72.56 days as of December 31, 2024.

This trend indicates that McDonald's has been taking slightly longer to pay its suppliers in recent years, as evidenced by the increase in the number of days of payables. It is important to note that a longer number of days of payables can sometimes indicate inefficiencies in cash management or potential liquidity issues, as the company is holding onto cash for a longer period before settling its payables. Monitoring this ratio over time can provide insights into McDonald's working capital management and financial health.