McDonald’s Corporation (MCD)

Number of days of payables

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Payables turnover		5.03	5.00	4.99	5.03	4.17	5.21	5.44	5.37	4.45	5.58	5.98	6.09	4.22	5.49	5.59	5.98	5.37	5.55	7.20	5.68
Number of days of payables	days	72.56	73.03	73.12	72.50	87.61	70.06	67.05	68.01	82.01	65.41	60.99	59.91	86.55	66.49	65.34	61.05	67.95	65.78	50.69	64.29

December 31, 2024 calculation

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

McDonald's Corporation's number of days of payables has shown some fluctuations over the past few years. As of December 31, 2024, the number of days of payables was 72.56 days. This indicates that on average, McDonald's takes about 72.56 days to pay its suppliers and vendors for goods and services purchased on credit.

The trend in the number of days of payables ranged from a low of 50.69 days on June 30, 2020, to a high of 87.61 days on December 31, 2023. Overall, the number of days of payables has shown some variability but has generally remained within a reasonable range.

It is important to note that a higher number of days of payables may indicate that McDonald's is taking longer to pay its bills, potentially signaling cash flow issues or strained supplier relationships. Conversely, a lower number of days of payables could indicate efficient cash management but may also suggest that McDonald's is not taking full advantage of available credit terms.

Analyzing the number of days of payables alongside other financial ratios and industry benchmarks can provide a more comprehensive understanding of McDonald's payment practices and financial performance.