McDonald’s Corporation (MCD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-4,706,700	-6,003,400	-4,601,000	-7,824,900	-8,210,300
Debt-to-capital ratio		1.15	1.20	1.15	1.29	1.32

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $37,152,900K ÷ ($37,152,900K + $-4,706,700K)
= 1.15

The debt-to-capital ratio of McDonald's Corp has seen a fluctuating trend over the past five years. The ratio decreased from 1.32 in 2019 to 1.13 in 2023. This indicates that the company's reliance on debt in its capital structure has declined over this period. Lower debt-to-capital ratios typically suggest a lower financial risk and more financial stability for the company.

Overall, the decreasing trend in the debt-to-capital ratio for McDonald's Corp signifies that the company has been gradually decreasing its debt levels relative to its total capital, which may improve its financial health and reduce the risk associated with high debt levels.