McDonald’s Corporation (MCD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,085,000 | 1,221,000 | 792,000 | 838,000 | 4,579,000 | 3,496,300 | 1,625,600 | 3,708,100 | 2,583,800 | 2,828,300 | 1,872,500 | 2,335,700 | 4,709,200 | 4,305,800 | 3,049,400 | 3,019,700 | 3,449,100 | 3,683,800 | 3,255,700 | 5,379,800 |
| Short-term investments | US$ in thousands | — | — | 1,676,000 | 9,167,200 | 300 | — | 13,600 | — | — | — | 66,100 | — | — | 1,171,000 | 1,196,000 | 1,211,000 | 1,297,000 | 1,283,000 | — | — |
| 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 |
| Cash ratio | 0.28 | 0.19 | 0.63 | 2.05 | 0.67 | 0.87 | 0.45 | 0.80 | 0.68 | 0.81 | 0.56 | 0.55 | 1.17 | 1.07 | 1.08 | 0.92 | 0.77 | 0.79 | 0.45 | 1.35 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,085,000K
+ $—K)
÷ $3,861,000K
= 0.28
The cash ratio of McDonald’s Corporation has shown fluctuations over the reporting periods. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.
From March 31, 2020, to June 30, 2024, the cash ratio ranged from a low of 0.19 to a high of 2.05. A higher cash ratio indicates a stronger ability to cover short-term liabilities, while a lower ratio may suggest liquidity challenges.
Notable fluctuations in the cash ratio include a significant increase from 0.67 on December 31, 2023, to 2.05 on March 31, 2024, indicating a substantial improvement in the company's liquidity position. Conversely, there was a decline from 1.35 on March 31, 2020, to 0.45 on June 30, 2020, which could signify a temporary strain on liquidity during that period.
Overall, monitoring McDonald’s Corporation's cash ratio trends is crucial for assessing its liquidity and financial health, as it reflects the company's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2024