McDonald’s Corporation (MCD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-4,706,700	-4,854,800	-4,999,100	-5,776,100	-6,003,400	-6,566,200	-6,369,800	-5,990,800	-4,601,000	-5,675,000	-5,808,000	-7,235,500	-7,824,900	-8,472,100	-9,463,100	-9,293,400	-8,210,300	-8,599,200	-6,808,800	-6,550,900
Debt-to-capital ratio		1.15	1.15	1.16	1.19	1.20	1.23	1.23	1.21	1.15	1.20	1.20	1.26	1.29	1.32	1.38	1.32	1.32	1.35	1.26	1.25

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 shown a slight fluctuation over the past eight quarters. The ratio has ranged from a low of 1.13 in Q4 2023 to a high of 1.23 in Q3 and Q2 2022.

A debt-to-capital ratio above 1 indicates that the company has more debt than equity in its capital structure, which can suggest a higher financial risk. The gradual increase in the ratio over the quarters may indicate an increasing reliance on debt to finance its operations or growth initiatives.

It is important for investors and stakeholders to closely monitor this trend and assess its implications on the company's financial health and stability. Further analysis of the company's debt levels, profitability, and ability to service its debt obligations would provide more insight into the overall financial position of McDonald's Corp.