McDonald’s Corporation (MCD)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,599,000 7,986,000 5,424,200 7,148,500 6,243,200
Total current liabilities US$ in thousands 3,861,000 6,859,000 3,802,100 4,020,000 6,181,200
Current ratio 1.19 1.16 1.43 1.78 1.01

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,599,000K ÷ $3,861,000K
= 1.19

The current ratio of McDonald's Corporation has shown varying trends over the past five years. Beginning at 1.01 in December 2020, the ratio increased consistently to 1.78 by December 2021, indicating a significant improvement in short-term liquidity. However, there was a slight decrease to 1.43 by December 2022, followed by a further decline to 1.16 by December 2023. Despite these fluctuations, the current ratio rebounded to 1.19 by December 2024.

A current ratio above 1 suggests that McDonald's has more current assets than current liabilities, which is generally considered a positive indicator of the company's ability to meet its short-term obligations. However, the fluctuations in the ratio over the years may indicate changes in the company's liquidity position and the need for further analysis to understand the underlying factors driving these fluctuations.


See also:

McDonald’s Corporation Current Ratio