McDonald’s Corporation (MCD)

Debt-to-assets ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	37,152,900	37,274,600	35,710,100	36,603,700	35,903,500	34,866,200	34,576,500	33,988,800	35,622,700	34,628,000	34,922,600	34,823,200	35,196,800	35,143,400	34,675,600	38,046,600	34,118,100	32,850,100	32,654,300	32,892,000
Total assets	US$ in thousands	56,146,800	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	47,510,800	45,805,000	46,199,800	46,466,600
Debt-to-assets ratio		0.66	0.72	0.71	0.70	0.71	0.72	0.70	0.67	0.66	0.66	0.67	0.68	0.67	0.69	0.69	0.75	0.72	0.72	0.71	0.71

December 31, 2023 calculation

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

The debt-to-assets ratio of McDonald's Corp has exhibited a relatively stable trend over the past eight quarters. The ratio ranged from 0.67 to 0.73 during this period, indicating that the company's level of leverage has been moderate to high. A higher ratio suggests that a larger portion of the company's assets is financed through debt, which may pose a higher risk in case of financial distress.

The slight fluctuations in the debt-to-assets ratio, hovering around the 0.70 mark, indicate that McDonald's has maintained a consistent balance between debt and assets. This stability in the ratio suggests that the company has been managing its debt levels effectively, possibly using debt as a strategic tool to fund growth initiatives or capital investments.

Overall, the debt-to-assets ratio analysis indicates that McDonald's Corp has maintained a reasonable level of leverage relative to its asset base, which could imply a prudent approach to managing its financial structure and risk profile.