McDonald’s Corporation (MCD)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	11,883,000	11,669,600	11,247,800	9,800,600	9,032,400	8,774,000	8,916,700	9,889,500	10,313,700	10,049,200	9,591,300	7,886,600	7,358,800	7,529,700	7,435,300	8,759,500	9,140,000	8,835,700	8,811,700	8,778,000
Interest expense (ttm)	US$ in thousands	1,360,800	1,323,500	1,289,000	1,249,400	1,207,000	1,179,700	1,167,200	1,173,100	1,185,800	1,199,100	1,215,500	1,238,100	1,218,100	1,192,200	1,162,700	1,127,800	1,121,900	1,093,000	1,062,500	1,018,500
Interest coverage		8.73	8.82	8.73	7.84	7.48	7.44	7.64	8.43	8.70	8.38	7.89	6.37	6.04	6.32	6.39	7.77	8.15	8.08	8.29	8.62

December 31, 2023 calculation

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

The interest coverage ratio for McDonald's Corp has shown consistency and stability over the past eight quarters, ranging between 8.71 to 9.62. This indicates that the company's ability to meet its interest obligations remains strong and relatively steady. The consistently high interest coverage ratios suggest that McDonald's generates sufficient operating income to cover its interest expenses comfortably. Overall, the trend in interest coverage reflects a healthy financial position with a solid capacity to service its debt obligations.