McDonald’s Corporation (MCD)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	38,424,000	37,153,000	35,903,500	35,622,700	35,196,800
Total assets	US$ in thousands	55,182,000	56,147,000	50,435,600	53,854,300	52,626,800
Debt-to-assets ratio		0.70	0.66	0.71	0.66	0.67

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $38,424,000K ÷ $55,182,000K
= 0.70

McDonald’s Corporation's debt-to-assets ratio has shown a slight fluctuation over the past five years. As of December 31, 2020, the ratio was at 0.67, indicating that 67% of the company's assets were financed by debt. This ratio decreased to 0.66 by the end of 2021, suggesting a slight improvement in the company's debt management. However, by the end of 2022, the ratio increased to 0.71, indicating that 71% of the assets were funded by debt, which may raise concerns about the company's leverage.

In the following years, McDonald’s managed to bring down its debt-to-assets ratio back to 0.66 as of December 31, 2023. However, it increased again to 0.70 by the end of 2024, showing a slightly higher reliance on debt to finance its assets.

Overall, the trend in McDonald’s Corporation's debt-to-assets ratio indicates some variability but generally a moderate level of debt compared to its assets. The company's ability to maintain this ratio within a reasonable range will be important for investors and analysts assessing its financial health and risk levels.