McDonald’s Corporation (MCD)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	4,579,300	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	898,500	1,177,300	1,134,500	2,289,100
Short-term investments	US$ in thousands	—	—	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	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	3,621,000	4,275,600	3,240,000	3,379,600
Cash ratio		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	0.25	0.28	0.35	0.68

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,579,300K + $—K) ÷ $6,859,000K
= 0.67

The cash ratio of McDonald's Corp has shown some fluctuations in the past quarters. In Q4 2023, the cash ratio was 0.79, which indicates that the company had $0.79 in cash and cash equivalents for every $1 of current liabilities. This was a decrease compared to the previous quarter (Q3 2023) when the cash ratio was 1.14, suggesting a stronger liquidity position at that time.

Looking further back, in Q2 2023, the cash ratio was 0.73, showing a slight decrease from Q1 2023 when it was 1.01. The cash ratio in Q4 2022 was 0.86, lower than the previous quarter (Q3 2022) when it was 1.09, indicating a decline in liquidity during that period.

In Q2 2022, the cash ratio was 0.87, slightly higher than Q1 2022 when it was 0.69. Overall, the trend in the cash ratio of McDonald's Corp has been somewhat inconsistent, with periods of both improvement and decline in liquidity position over the past eight quarters. It is important for investors and stakeholders to monitor these fluctuations to assess the company's ability to meet its short-term obligations.