McDonald’s Corporation (MCD)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	38,424,000	38,990,000	38,524,000	36,764,000	37,153,000	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
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
Debt-to-assets ratio		0.70	0.69	0.72	0.69	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

December 31, 2024 calculation

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

The debt-to-assets ratio of McDonald's Corporation has shown some fluctuations over the past few years, ranging from 0.66 to 0.75. The ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio signifies that a smaller portion of the assets is funded by debt, which may be viewed favorably by investors and creditors as it suggests lower financial risk.

From March 31, 2020, to December 31, 2024, the debt-to-assets ratio has generally decreased from 0.75 to 0.70 with some minor fluctuations along the way. This trend suggests that McDonald's has been gradually reducing its reliance on debt to finance its operations and acquisitions.

It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk management practices. A stable or decreasing trend in the debt-to-assets ratio can indicate prudent financial management and sustainable growth strategies.