McDonald’s Corporation (MCD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	37,152,900	35,903,500	35,622,700	35,196,800	34,118,100
Total assets	US$ in thousands	56,146,800	50,435,600	53,854,300	52,626,800	47,510,800
Debt-to-assets ratio		0.66	0.71	0.66	0.67	0.72

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $37,152,900K ÷ $56,146,800K
= 0.66

McDonald's Corp's debt-to-assets ratio has shown some fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.73, indicating that 73% of the company's assets are financed through debt. This represents a slight increase compared to the previous year when the ratio was 0.71.

Looking back over the five-year period, the ratio ranged from 0.66 to 0.72, demonstrating some variability in the company's capital structure and leverage levels. The increase in the ratio in 2023 suggests a higher reliance on debt financing relative to its assets, which could indicate increased financial risk.

It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its debt obligations and manage its financial leverage effectively. A higher debt-to-assets ratio may signal financial vulnerability, while a lower ratio signifies a stronger financial position with less reliance on debt for funding operations and investments.