McDonald’s Corporation (MCD)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	11,646,700	9,371,000	10,356,000	7,324,000	9,069,800
Total assets	US$ in thousands	56,146,800	50,435,600	53,854,300	52,626,800	47,510,800
Operating ROA		20.74%	18.58%	19.23%	13.92%	19.09%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $11,646,700K ÷ $56,146,800K
= 20.74%

The operating return on assets (operating ROA) for McDonald's Corp has shown a generally positive trend over the past five years. The operating ROA increased from 18.70% in 2019 to 20.92% in 2023, indicating improved operational efficiency in generating profits from its assets. This suggests that the company has been able to effectively utilize its assets to generate operating income.

The increase in operating ROA from 2022 to 2023, from 20.51% to 20.92%, suggests a continued upward trend in operational performance, potentially due to improved cost management, revenue growth, or a combination of both. This indicates that the company is efficiently managing its operations to generate higher returns relative to its assets.

The substantial improvement in operating ROA from 2020 to 2021, from 13.69% to 18.33%, stands out as a significant positive development, indicating a strong rebound in operational performance and profitability. This increase may be attributed to strategic initiatives, operational efficiencies, or other factors that contributed to enhancing the company's profitability.

Overall, the consistent improvement in operating ROA over the years reflects positively on McDonald's Corp's ability to effectively utilize its assets to generate operating profits. This trend suggests that the company has been successful in managing its operations efficiently to drive profitability and create value for its shareholders.