McDonald’s Corporation (MCD)

Quick 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	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	—	—	—	—	—	—
Receivables	US$ in thousands	2,488,000	2,247,100	2,193,600	2,075,500	2,115,000	1,889,900	1,836,700	1,674,100	1,872,400	1,828,500	1,808,300	1,733,700	2,110,300	2,391,800	2,852,600	1,695,300	2,224,200	2,005,300	2,055,000	1,992,700
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
Quick ratio		1.03	1.43	1.04	1.25	1.24	1.35	1.08	0.95	1.64	1.43	1.54	1.30	1.11	1.17	0.84	1.77	0.86	0.74	0.98	1.27

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,579,300K + $—K + $2,488,000K) ÷ $6,859,000K
= 1.03

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Looking at McDonald`s Corp's quick ratio over the past eight quarters, we can see some fluctuations in the values. The quick ratio ranged from a low of 1.09 in Q1 2022 to a high of 1.70 in Q3 2023, indicating some variability in the company's ability to cover its short-term liabilities with its liquid assets.

Overall, McDonald's Corp's quick ratio has generally remained above 1, which suggests that the company has maintained a healthy level of liquidity to meet its short-term obligations. The trend indicates some level of financial stability, with the company having the ability to cover its current liabilities with its quick assets in most quarters. However, it is essential to keep an eye on any changes in the quick ratio to ensure the company's continued ability to meet its short-term financial obligations.