McDonald’s Corporation (MCD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-3,797,000	-5,177,000	-4,824,000	-4,833,000	-4,707,000	-4,855,000	-4,999,000	-5,776,000	-6,003,000	-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
Debt-to-capital ratio		1.11	1.15	1.14	1.15	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

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 been showing a declining trend over the past few years, indicating a decreasing level of financial leverage. From March 31, 2020, to December 31, 2024, the ratio decreased from 1.32 to 1.11, with some minor fluctuations in between.

This decreasing trend suggests that McDonald's has been reducing its reliance on debt financing in relation to its total capital structure. A lower debt-to-capital ratio generally indicates a lower financial risk and greater financial stability for the company.

Overall, based on the trend observed in the debt-to-capital ratio, McDonald's appears to be effectively managing its debt levels and capital structure, which could be viewed positively by investors and stakeholders.