McDonald’s Corporation (MCD)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,085,000 | 1,221,000 | 792,000 | 838,000 | 4,579,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 1,676,000 | 9,167,200 | 300 | — | 13,600 | — | — | — | 66,100 | — | — | 1,171,000 | 1,196,000 | 1,211,000 | 1,297,000 | 1,283,000 | — | — |
| Receivables | US$ in thousands | 2,383,000 | 2,460,000 | 2,404,000 | 2,238,000 | 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 |
| 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 |
| Quick ratio | 0.90 | 0.58 | 1.25 | 2.51 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,085,000K
+ $—K
+ $2,383,000K)
÷ $3,861,000K
= 0.90
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 indicates that a company has just enough liquid assets to cover its current liabilities.
Based on the provided data for McDonald’s Corporation, the quick ratio has shown fluctuations over the reported periods. The quick ratio was relatively stable and healthy in the range of 1.1 to 1.7 from March 2020 to December 2021. This implies that the company maintained a good level of liquidity to meet its short-term obligations during these periods.
However, there was a notable decrease in the quick ratio to 0.95 in March 2022, which suggests a potential strain on the company's ability to quickly cover its current liabilities with liquid assets. Subsequently, the quick ratio showed improvement to around 1.3 in the following periods up to June 2023.
In March 2024, there was a significant spike in the quick ratio to 2.51, indicating a substantial increase in the company's liquidity position compared to the previous periods. However, this was followed by a decline to 0.58 in September 2024, which suggests a potential liquidity challenge for McDonald’s Corporation during that period.
Overall, while the quick ratio of McDonald’s Corporation has shown fluctuations over the reported periods, it is important to closely monitor the company's liquidity position to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024