McDonald’s Corporation (MCD)

Interest coverage

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 11,883,000 9,032,400 10,313,700 7,358,800 9,140,000
Interest expense US$ in thousands 1,360,800 1,207,000 1,185,800 1,218,100 1,121,900
Interest coverage 8.73 7.48 8.70 6.04 8.15

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $11,883,000K ÷ $1,360,800K
= 8.73

McDonald`s Corp has maintained a relatively stable interest coverage ratio over the past five years, ranging from 6.12 in 2020 to 8.82 in 2023. This ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio suggests that the company is more capable of meeting its interest obligations from its operating profits. The consistent levels of interest coverage over the years reflect a strong financial position for McDonald's, demonstrating its ability to generate sufficient operating income to comfortably cover its interest expenses.


Peer comparison

Dec 31, 2023


See also:

McDonald’s Corporation Interest Coverage