McDonald’s Corporation (MCD)

Total asset 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
Total assets	US$ in thousands	56,146,800	50,435,600	53,854,300	52,626,800	47,510,800
Total asset turnover		0.45	0.46	0.43	0.36	0.45

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $25,493,700K ÷ $56,146,800K
= 0.45

The total asset turnover ratio for McDonald`s Corp has fluctuated over the past five years, ranging from 0.36 in 2020 to 0.46 in 2022. It measures the efficiency of the company in generating sales revenue relative to its total assets. The lower ratios in 2020 and 2021 indicate that the company was generating less revenue per dollar of assets compared to the other years. However, there was a notable improvement in 2022 with a ratio of 0.46, suggesting that the company managed to increase its sales relative to its total assets. In 2023, the ratio decreased slightly to 0.45, which could imply a slight decrease in sales efficiency compared to the previous year. Overall, the trend in total asset turnover for McDonald`s Corp shows some variability, indicating fluctuations in the company's ability to generate revenue efficiently with its total assets.