McDonald’s Corporation (MCD)

Current 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
Total current assets	US$ in thousands	7,986,400	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	3,557,900	3,604,900	3,915,400	4,964,400
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
Current ratio		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	0.98	0.84	1.21	1.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $7,986,400K ÷ $6,859,000K
= 1.16

The current ratio of McDonald's Corp has varied over the past eight quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position.

In Q4 2023, the current ratio was 1.16, reflecting a decrease from the previous quarter. This may suggest that McDonald's faced challenges in meeting its short-term obligations efficiently during that period.

In Q3 2023, the current ratio spiked to 1.71, indicating a significant improvement in liquidity compared to the previous quarter. This surge may indicate better management of current assets or a reduction in short-term liabilities.

In Q2 2023, the current ratio was 1.35, still showing a reasonable ability to cover short-term liabilities but lower than the previous quarter. This could suggest a slight decrease in liquidity compared to the prior period.

Q1 2023 saw a current ratio of 1.47, which was an increase from Q2 2023. This improvement may signal that McDonald's enhanced its ability to meet short-term obligations during that quarter.

Comparing the data to the same quarter of the previous year, Q4 2022 had a current ratio of 1.43, indicating a relatively stable liquidity position. In Q3 2022, the current ratio was 1.65, showing higher liquidity than Q4 2022, while in Q2 2022, the ratio was 1.41, suggesting a moderate decrease in liquidity compared to the previous quarter. Lastly, Q1 2022 had a current ratio of 1.10, indicating a significant improvement in liquidity compared to the previous quarter.

Overall, McDonald's Corp's current ratio has fluctuated over the past eight quarters, reflecting changes in its ability to meet short-term obligations. It is essential to monitor these variations to assess the company's liquidity management and financial health effectively.