McDonald’s Corporation (MCD)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	25,920,000	25,494,000	23,182,600	23,222,900	19,207,800
Total assets	US$ in thousands	55,182,000	56,147,000	50,435,600	53,854,300	52,626,800
Total asset turnover		0.47	0.45	0.46	0.43	0.36

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $25,920,000K ÷ $55,182,000K
= 0.47

Total asset turnover is a financial ratio that measures how efficiently a company is utilizing its assets to generate revenue. For McDonald’s Corporation, the total asset turnover has displayed an increasing trend over the past five years. In December 2020, the total asset turnover was 0.36, indicating that for every dollar of assets, McDonald’s generated $0.36 in revenue.

By December 2024, the total asset turnover had increased to 0.47, signifying an improvement in asset utilization efficiency. This suggests that McDonald’s has been more effective in leveraging its assets to generate revenue over the years.

A higher total asset turnover ratio generally indicates better asset management and efficiency in generating sales. The consistent improvement in McDonald’s total asset turnover ratio reflects positively on the company's operational performance and ability to generate revenue from its asset base. However, it is important to note that the interpretation of total asset turnover should be considered in conjunction with other financial metrics and industry benchmarks for a comprehensive assessment of the company's financial health.