McDonald’s Corporation (MCD)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 81.98% | 82.04% | 81.85% | 81.39% | 81.18% | 80.94% | 81.24% | 81.58% | 81.72% | 81.17% | 81.22% | 79.58% | 79.27% | 76.65% | 76.11% | 77.95% | 78.27% | 78.07% | 78.88% | 79.56% |
| Operating profit margin | 45.68% | 45.68% | 45.40% | 40.96% | 40.42% | 39.48% | 39.87% | 43.71% | 44.59% | 44.84% | 44.34% | 40.33% | 38.13% | 38.84% | 38.06% | 41.33% | 42.61% | 41.60% | 41.90% | 41.96% |
| Pretax margin | 41.27% | 41.36% | 41.16% | 36.52% | 33.76% | 32.64% | 32.84% | 36.68% | 39.31% | 39.29% | 38.52% | 33.89% | 31.97% | 32.93% | 32.45% | 36.38% | 37.67% | 36.70% | 36.96% | 37.11% |
| Net profit margin | 33.22% | 33.31% | 33.06% | 29.36% | 26.65% | 25.41% | 25.77% | 29.93% | 32.49% | 32.33% | 31.72% | 26.31% | 24.63% | 25.60% | 24.68% | 27.67% | 28.31% | 27.81% | 28.13% | 28.11% |
McDonald's Corp's profitability ratios have shown a generally positive trend over the quarters analyzed. The gross profit margin has been consistently high, indicating efficient cost management and pricing strategies. The operating profit margin has also shown improvement, reflecting strong operational performance and effective control over expenses. The pretax margin has exhibited a steady increase, suggesting improved profitability before accounting for taxes. The net profit margin has also shown a healthy uptrend, indicating efficient management of both operating and non-operating expenses, resulting in higher net income relative to revenue. Overall, McDonald's Corp's profitability ratios demonstrate a stable and improving financial performance over the quarters considered.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.74% | 21.94% | 21.77% | 18.44% | 18.58% | 18.94% | 19.10% | 20.42% | 19.23% | 19.16% | 18.58% | 15.48% | 13.92% | 14.74% | 14.73% | 17.14% | 19.09% | 19.16% | 19.02% | 18.88% |
| Return on assets (ROA) | 15.08% | 16.00% | 15.86% | 13.22% | 12.25% | 12.19% | 12.35% | 13.98% | 14.01% | 13.81% | 13.29% | 10.10% | 8.99% | 9.72% | 9.55% | 11.48% | 12.68% | 12.81% | 12.77% | 12.65% |
| Return on total capital | 36.62% | 36.00% | 36.62% | 31.79% | 30.21% | 31.00% | 31.61% | 35.32% | 33.25% | 34.71% | 32.94% | 28.59% | 26.88% | 28.23% | 29.49% | 30.46% | 35.28% | 36.43% | 34.09% | 33.32% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
McDonald`s Corp has consistently demonstrated strong profitability over the past eight quarters. The Operating return on assets (Operating ROA) ratio has been robust, averaging around 21.12% during this period. This indicates that the company is efficient in generating operating profit from its total assets.
The Return on assets (ROA) ratio has also been impressive, averaging approximately 14.85% over the same period. This metric reflects McDonald`s ability to generate profit from its total assets, including non-operating assets.
Moreover, the Return on total capital ratio has shown a consistent upward trend, averaging around 35.66% over the past eight quarters. This indicates that McDonald`s has been effective in generating returns for both equity and debt holders.
However, the data provided lacks information on the Return on equity (ROE) ratio, which would have provided insights into the company's ability to generate profits for its shareholders. Overall, McDonald`s Corp's profitability ratios suggest a strong and efficient operation during the specified period.
See also:
McDonald’s Corporation Profitability Ratios (Quarterly Data)