McDonald’s Corporation (MCD)

Working capital 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
Total current assets	US$ in thousands	4,599,000	4,912,000	4,205,000	4,057,000	7,986,000	6,850,000	4,945,400	6,798,700	5,424,200	5,740,800	4,919,300	4,656,400	7,148,500	6,795,900	5,701,200	5,467,900	6,243,200	6,736,100	6,609,400	7,556,900
Total current liabilities	US$ in thousands	3,861,000	6,308,000	3,910,000	4,886,000	6,859,000	4,002,700	3,673,700	4,624,700	3,802,100	3,486,100	3,480,100	4,234,600	4,020,000	5,095,600	3,934,800	4,579,800	6,181,200	6,280,200	7,246,100	3,987,800
Working capital turnover		35.12	—	87.31	—	22.62	8.79	19.03	10.77	14.29	10.32	16.39	56.34	7.42	13.25	12.31	22.09	309.80	42.21	—	5.88

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $25,920,000K ÷ ($4,599,000K – $3,861,000K)
= 35.12

The working capital turnover ratio for McDonald's Corporation fluctuated over the period provided. The ratio was 5.88 as of March 31, 2020, and increased significantly to 309.80 by December 31, 2020, indicating a much more efficient use of working capital to generate sales during that period.

However, the ratio dropped to 7.42 by December 31, 2021, before increasing to 87.31 by June 30, 2024, suggesting fluctuations in efficiency in utilizing working capital during different quarters.

Overall, it is important for McDonald's to monitor and manage its working capital turnover ratio effectively to ensure optimal utilization of its working capital in generating revenues.