McDonald’s Corporation (MCD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-3,797,000	-4,707,000	-6,003,000	-4,601,000	-7,824,900
Debt-to-capital ratio		1.11	1.15	1.20	1.15	1.29

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $38,424,000K ÷ ($38,424,000K + $-3,797,000K)
= 1.11

The debt-to-capital ratio of McDonald’s Corporation has shown a decreasing trend over the years, from 1.29 as of December 31, 2020, to 1.11 as of December 31, 2024. This suggests that the company has been able to reduce its reliance on debt financing in relation to its overall capital structure. A decreasing debt-to-capital ratio can indicate improved financial health and lower financial risk for the company. It shows that McDonald’s is gradually reducing its debt obligations in relation to its total capital, which may imply stronger financial stability and better ability to weather economic downturns or operational challenges. Overall, the downward trend in the debt-to-capital ratio for McDonald’s reflects a positive financial management strategy.