McDonald’s Corporation (MCD)

Current 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
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
Current ratio		1.19	0.78	1.08	0.83	1.16	1.71	1.35	1.47	1.43	1.65	1.41	1.10	1.78	1.33	1.45	1.19	1.01	1.07	0.91	1.90

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 fluctuated over the past few years, ranging from 0.78 to 1.90. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a stronger ability to cover short-term obligations.

The current ratio increased from 0.91 in June 2020 to peak at 1.78 in December 2021, reflecting an improvement in the company's short-term liquidity position. However, there was a decline to 0.83 in March 2024, indicating potential challenges in meeting current liabilities with available current assets during that period.

Overall, McDonald's current ratio tends to exhibit variability, which may be influenced by factors such as seasonal fluctuations in business operations, changes in working capital management, and adjustments in the company's financial structure. It is important for stakeholders to monitor these fluctuations to assess the company's ability to meet its short-term financial obligations effectively.