McDonald’s Corporation (MCD)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	8,222,000	8,245,000	8,307,000	8,595,000	8,468,000	8,332,400	7,997,000	6,875,000	6,177,400	5,912,800	6,081,100	7,112,400	7,545,200	7,283,600	6,896,300	5,160,800	4,730,500	4,925,500	4,770,800	5,803,900
Total assets	US$ in thousands	55,182,000	56,172,000	53,801,000	53,513,000	56,147,000	52,089,300	50,442,000	52,014,400	50,435,600	48,501,600	49,247,800	50,877,700	53,854,300	52,727,000	51,893,100	51,103,100	52,626,800	50,699,300	49,938,900	50,568,000
ROA		14.90%	14.68%	15.44%	16.06%	15.08%	16.00%	15.85%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $8,222,000K ÷ $55,182,000K
= 14.90%

McDonald's Corporation's return on assets (ROA) has shown fluctuations over the past few years. The ROA was relatively stable around 9-11% from March 2020 to December 2021. Subsequently, there was a notable increase in ROA, reaching a peak of 16.06% by March 2024. This improvement indicates that McDonald's was able to generate more profit relative to its assets during this period.

However, there was a slight decline in ROA in the following quarters, settling around 14-16%. Overall, the trend suggests that McDonald's has been effectively utilizing its assets to generate profit, with a recent improvement in ROA performance. Further analysis of the company's operations and profitability may provide insights into the factors driving these fluctuations in ROA.