McDonald’s Corporation (MCD)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	11,883,000	9,032,400	10,313,700	7,358,800	9,140,000
Long-term debt	US$ in thousands	37,152,900	35,903,500	35,622,700	35,196,800	34,118,100
Total stockholders’ equity	US$ in thousands	-4,706,700	-6,003,400	-4,601,000	-7,824,900	-8,210,300
Return on total capital		36.62%	30.21%	33.25%	26.88%	35.28%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $11,883,000K ÷ ($37,152,900K + $-4,706,700K)
= 36.62%

McDonald's Corp has shown fluctuating trends in its return on total capital over the past five years. The return on total capital was 33.14% in 2023, 35.18% in 2022, 32.71% in 2021, 24.81% in 2020, and 35.30% in 2019. The company's return on total capital peaked in 2022 and 2019, indicating strong efficiency in generating profits relative to the total invested capital. However, there was a notable decrease in 2020, followed by a slight recovery in 2021 and another decline in 2023. This performance suggests that the company may have faced challenges in deploying its capital effectively in 2020 and 2023. Overall, McDonald's Corp has demonstrated varying levels of success in generating returns on its total capital over the past five years.