McDonald’s Corporation (MCD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,223,000 | 8,469,000 | 6,177,400 | 7,545,200 | 4,730,500 |
| Total assets | US$ in thousands | 55,182,000 | 56,147,000 | 50,435,600 | 53,854,300 | 52,626,800 |
| ROA | 14.90% | 15.08% | 12.25% | 14.01% | 8.99% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $8,223,000K ÷ $55,182,000K
= 14.90%
Based on the provided data on McDonald’s Corporation's return on assets (ROA), we observe a consistent improvement in the company's efficiency in generating profits from its assets over the years.
As of December 31, 2020, McDonald’s ROA stood at 8.99%, indicating that the company generated $0.0899 in profit for every $1 of assets. Subsequently, the ROA increased to 14.01% by December 31, 2021, demonstrating a significant enhancement in asset utilization.
In the following years, the trend continued with the ROA reaching 12.25% by December 31, 2022, 15.08% by December 31, 2023, and 14.90% by December 31, 2024. These figures suggest that McDonald’s efficiently managed its assets to generate higher returns for shareholders.
Overall, McDonald’s Corporation has shown a positive trend in its return on assets, indicating effective management of resources and improved profitability relative to its asset base.
Peer comparison
Dec 31, 2024