McDonald’s Corporation (MCD)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	25,493,700	23,182,600	23,222,900	19,207,800	21,364,400
Receivables	US$ in thousands	2,488,000	2,115,000	1,872,400	2,110,300	2,224,200
Receivables turnover		10.25	10.96	12.40	9.10	9.61

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $25,493,700K ÷ $2,488,000K
= 10.25

The receivables turnover ratio is a measure of how efficiently a company is able to collect payments from its customers. A higher receivables turnover indicates that the company is able to collect payments more quickly, which is generally seen as a positive sign.

Analyzing McDonald's Corp receivables turnover over the past five years, we can see fluctuations in the ratio. In 2023, the receivables turnover ratio was 10.25, slightly lower than the 10.96 in 2022 but higher than both 2020 and 2019. This decrease may indicate a slight decline in the efficiency of collecting payments from customers compared to the previous year. However, the ratio remains relatively high, suggesting that McDonald's is still efficient in collecting payments compared to industry averages.

Overall, the trend in McDonald's receivables turnover ratio indicates that the company has been effective in managing its accounts receivable and collecting payments in a timely manner. It is important for investors and stakeholders to monitor this ratio over time to ensure that the company's credit and collection policies remain effective.