McDonald’s Corporation (MCD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,712,000 | 11,647,000 | 9,371,000 | 10,356,000 | 7,324,000 |
| Total assets | US$ in thousands | 55,182,000 | 56,147,000 | 50,435,600 | 53,854,300 | 52,626,800 |
| Operating ROA | 21.22% | 20.74% | 18.58% | 19.23% | 13.92% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $11,712,000K ÷ $55,182,000K
= 21.22%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is utilizing its assets to generate operating profits. Analyzing McDonald’s Corporation's Operating ROA, we observe a positive trend over the years.
As of December 31, 2020, McDonald’s Operating ROA stood at 13.92%, indicating that for every dollar of assets, the company generated approximately 13.92 cents in operating profit. Over the following years, there has been a consistent improvement in the ratio.
By December 31, 2024, McDonald’s Operating ROA has increased to 21.22%, demonstrating the company's enhanced ability to generate operating profits relative to its asset base. This upward trend suggests that McDonald’s has been effectively managing its assets to drive operating profitability, which is a positive indicator of financial health and operational efficiency.
Overall, the rising trend in McDonald’s Operating ROA showcases the company's improving efficiency in utilizing its assets to generate operating income, thereby potentially creating value for its shareholders.
Peer comparison
Dec 31, 2024