McDonald’s Corporation (MCD)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	25,920,000	25,938,200	25,757,200	25,765,200	25,494,200	25,014,500	24,194,600	23,415,000	23,182,600	23,265,200	23,594,400	23,763,900	23,222,900	22,527,600	21,744,400	19,618,000	19,207,800	19,243,000	19,327,200	20,975,500
Receivables	US$ in thousands	2,383,000	2,460,000	2,404,000	2,238,000	2,488,000	2,247,100	2,193,600	2,075,500	2,115,000	1,889,900	1,836,700	1,674,100	1,872,400	1,828,500	1,808,300	1,733,700	2,110,300	2,391,800	2,852,600	1,695,300
Receivables turnover		10.88	10.54	10.71	11.51	10.25	11.13	11.03	11.28	10.96	12.31	12.85	14.20	12.40	12.32	12.02	11.32	9.10	8.05	6.78	12.37

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,920,000K ÷ $2,383,000K
= 10.88

The receivables turnover ratio indicates how efficiently McDonald's Corporation collects its accounts receivable during a specific period. A higher turnover ratio reflects a shorter time taken to collect receivables, which is generally favorable.

Analyzing the receivables turnover data provided:
- The ratio fluctuated over the analyzed period, ranging from a low of 6.78 on June 30, 2020, to a high of 14.2 on March 31, 2022.
- There seems to be an overall increasing trend in the receivables turnover ratio, with some fluctuations in between.
- The ratio peaked in the first quarter of 2022 and then trended downward but remained relatively stable in the subsequent quarters.
- Despite some variability, McDonald's has generally shown effectiveness in collecting its accounts receivable in a timely manner over the years assessed.

Overall, the receivables turnover ratio of McDonald's Corporation indicates that the company efficiently manages its receivables, ensuring timely collection and maintaining a healthy cash flow position.