Explain this page
Arphra AIPlain-English read on McDonald's Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
ATop tier
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin57.4%
Operating margin46.1%
Net margin31.9%
ROE-478.4%
ROA14.4%
ROIC18.6%
Liquidity & leverage
Current ratio0.95×
Quick ratio0.94×
Debt / equity-30.62×
Net debt / EBITDA3.69×
Interest coverage8×
Efficiency & per-share
Asset turnover0.45×
Inventory days2
Days sales out.33
FCF / share$10.03
Book value / share$-2.50
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | $208.23B | $218.04B | — | — | — | — |
| Enterprise value | — | — | — | $259.09B | $272.08B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 10.00 | 10.12 | — | — | — | — |
| EV / FCF | — | — | — | 38.83 | 37.86 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | +3.95% | +3.93% | — | — | — | — |
| Free cash flow yield | — | — | — | +3.20% | +3.30% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +54.17% | +56.97% | +57.12% | +56.75% | +57.41% | +55.91% | +58.30% | +56.72% | +55.53% |
| Operating margin | +44.59% | +40.42% | +45.68% | +45.19% | +46.10% | +45.10% | +44.93% | +45.35% | +46.05% |
| EBITDA margin | +52.46% | +47.03% | +54.37% | +53.81% | +54.44% | +54.15% | +52.80% | +52.59% | +55.52% |
| EBIT margin | +44.41% | +38.96% | +46.61% | +45.72% | +46.42% | +47.11% | +46.55% | +47.59% | +45.85% |
| Pre-tax margin | +39.31% | +33.75% | +41.27% | +39.91% | +40.53% | +41.43% | +40.57% | +39.61% | +40.14% |
| Net margin | +32.49% | +26.65% | +33.22% | +31.72% | +31.85% | +32.07% | +31.39% | +31.87% | +32.64% |
| Cost structure | |||||||||
| Cost of revenue / sales | +45.83% | +43.03% | +42.88% | +43.25% | +42.59% | +43.46% | +44.18% | +43.16% | +43.43% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +10.24% | +10.75% | +9.55% | +9.31% | +9.61% | +9.65% | +9.40% | +9.68% | +9.21% |
| Effective tax rate | +17.34% | +21.06% | +19.51% | +20.50% | +21.42% | +20.28% | +20.01% | +21.35% | +20.86% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | -163.99% | -102.89% | -179.96% | -216.62% | -478.38% | -234.38% | -235.20% | -242.74% | -238.68% |
| Return on assets (ROA) | +14.01% | +12.25% | +15.08% | +14.90% | +14.39% | +14.81% | +14.10% | +14.23% | +14.96% |
| Return on capital (ROC) | +23.14% | +21.95% | +24.07% | +24.32% | +23.37% | +23.34% | +23.23% | +23.20% | +24.03% |
| Return on invested capital (ROIC) | +16.86% | +14.47% | +17.50% | +17.08% | +16.15% | +16.59% | +16.23% | +16.30% | +17.03% |
| Asset turnover | +43.12% | +45.96% | +45.41% | +46.97% | +45.17% | +46.18% | +44.93% | +44.65% | +45.85% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +32.49% | +26.65% | +33.22% | +31.72% | +31.85% | +32.07% | +31.39% | +31.87% | +32.64% |
| Asset turnover (× revenue / assets) | +43.12% | +45.96% | +45.41% | +46.97% | +45.17% | +46.18% | +44.93% | +44.65% | +45.85% |
| Equity multiplier (× assets / equity) | -1170.49% | -840.12% | -1193.09% | -1453.69% | -3324.86% | -1582.68% | -1667.79% | -1705.78% | -1595.21% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.43 | 0.46 | 0.45 | 0.47 | 0.45 | 0.46 | 0.45 | 0.45 | 0.46 |
| Fixed-asset turnover | 0.61 | 0.64 | 0.66 | 0.67 | 0.63 | — | — | — | — |
| Inventory turnover | 191.42 | 191.83 | 206.25 | 200.18 | 187.70 | — | — | — | — |
| Receivables turnover | 12.40 | 10.96 | 10.25 | 10.88 | 10.91 | — | — | — | — |
| Payables turnover | 10.57 | 10.18 | 9.91 | 10.89 | 9.97 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 29.43 | 33.30 | 35.62 | 33.56 | 33.47 | — | — | — | — |
| Days inventory outstanding (DIO) | 1.91 | 1.90 | 1.77 | 1.82 | 1.94 | — | — | — | — |
| Days payables outstanding (DPO) | 34.53 | 35.87 | 36.83 | 33.50 | 36.63 | — | — | — | — |
| Cash conversion cycle | -3.19 | -0.66 | 0.56 | 1.88 | -1.22 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.21 | 1.20 | 1.13 | 1.15 | 1.23 | 1.15 | 1.18 | 1.17 | 1.13 |
| FCF / Net income | 0.94 | 0.89 | 0.86 | 0.81 | 0.84 | 0.86 | 0.84 | 0.83 | 0.82 |
| FCF margin | +30.58% | +23.67% | +28.45% | +25.74% | +26.73% | +27.69% | +26.27% | +26.43% | +26.73% |
| OCF margin | +39.36% | +31.86% | +37.70% | +36.45% | +39.24% | +36.86% | +37.17% | +37.37% | +37.01% |
| CapEx / Revenue | +8.78% | +8.19% | +9.25% | +10.71% | +12.52% | +10.59% | +10.99% | +10.76% | +11.05% |
| CapEx / D&A | 1.09 | 1.02 | 1.19 | 1.32 | 1.53 | — | — | — | — |
| Stock-based comp / Revenue | +0.60% | +0.72% | +0.69% | +0.66% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 10.04 | 8.33 | 11.56 | 11.39 | 11.95 | 12.99 | 14.19 | 15.28 | 16.57 |
| EPS · basic | 10.11 | 8.39 | 11.63 | 11.45 | 12.00 | 13.16 | 14.22 | 15.58 | 16.51 |
| Book value / share | -6.12 | -8.10 | -6.43 | -5.26 | -2.50 | -5.47 | -5.57 | -5.82 | -6.23 |
| Tangible BV / share | -9.82 | -12.01 | -10.58 | -9.61 | -8.66 | -5.47 | -5.57 | -5.82 | -6.23 |
| Sales / share | 30.89 | 31.27 | 34.81 | 35.91 | 37.53 | 39.94 | 41.73 | 44.30 | 45.59 |
| Operating CF / share | 12.16 | 9.96 | 13.13 | 13.09 | 14.73 | 14.72 | 15.51 | 16.56 | 16.87 |
| Free cash flow / share | 9.45 | 7.40 | 9.91 | 9.24 | 10.03 | 11.06 | 10.96 | 11.71 | 12.19 |
| Dividends / share | 5.21 | 5.62 | 6.19 | 6.75 | 7.14 | 7.23 | 7.93 | 8.35 | 8.57 |
| Payout ratio | +51.94% | +67.48% | +53.52% | +59.22% | +59.73% | +56.43% | +60.52% | +59.11% | +57.63% |
| Retention ratio | +48.06% | +32.52% | +46.48% | +40.78% | +40.27% | +43.57% | +39.48% | +40.89% | +42.37% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | -0.18% | +9.98% | +1.67% | +3.72% | +5.89% | +5.78% | +4.94% | +3.39% | +4.36% |
| Gross profit · YoY | — | +4.98% | +10.27% | +1.00% | +4.93% | +3.13% | +10.29% | +2.09% | +1.22% | +4.68% |
| Profit | ||||||||||
| Operating income · YoY | — | -9.51% | +24.29% | +0.56% | +5.81% | +3.61% | +5.38% | +5.91% | +4.99% | +4.78% |
| EBITDA · YoY | — | -10.50% | +27.13% | +0.63% | +4.93% | +5.33% | +3.15% | +4.52% | +9.13% | +5.10% |
| Net income · YoY | — | -18.13% | +37.11% | -2.90% | +4.13% | +6.62% | +3.54% | +6.55% | +5.87% | +4.42% |
| Operating | ||||||||||
| EBIT · YoY | — | -12.43% | +31.57% | -0.27% | +5.30% | +7.48% | +4.52% | +7.30% | -0.41% | +4.77% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -17.03% | +38.78% | -1.47% | +4.92% | +8.69% | +9.28% | +7.62% | +8.48% | +6.46% |
| EPS · basic · YoY | — | -17.01% | +38.62% | -1.55% | +4.80% | +9.66% | +8.05% | +9.55% | +6.02% | +6.33% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $49.35B | $48.7B | $53.09B | $51.95B | $54.81B | $58.92B | $62.27B | $65.93B | $67.07B |
| Net debt | $44.64B | $46.12B | $48.51B | $50.86B | $54.04B | $56.59B | $59.7B | $63.37B | $64.4B |
| Net debt / EBITDA | 3.66 | 4.23 | 3.50 | 3.65 | 3.69 | 3.67 | 3.75 | 3.81 | 3.55 |
| Debt / equity | -10.73 | -8.11 | -11.28 | -13.68 | -30.62 | -15.13 | -15.49 | -15.89 | -15.01 |
| Debt / assets | +91.63% | +96.56% | +94.56% | +94.14% | +92.10% | +95.57% | +92.89% | +93.15% | +94.12% |
| Equity / assets | -8.54% | -11.90% | -8.38% | -6.88% | -3.01% | -6.32% | -6.00% | -5.86% | -6.27% |
| Coverage | |||||||||
| EBITDA / interest expense | 10.27 | 9.03 | 10.18 | 9.26 | 9.25 | 9.81 | 9.23 | 9.16 | 9.83 |
| Operating income / interest | 8.73 | 7.76 | 8.56 | 7.78 | 7.83 | 8.17 | 7.85 | 7.90 | 8.15 |
| Interest expense | $1.19B | $1.21B | $1.36B | $1.51B | $1.58B | $1.57B | $1.72B | $1.81B | $1.85B |
| Liquidity | |||||||||
| Current ratio | 1.78 | 1.43 | 1.16 | 1.19 | 0.95 | — | — | — | — |
| Quick ratio | 1.64 | 1.24 | 1.03 | 0.90 | 0.74 | — | — | — | — |
| Cash ratio | 1.17 | 0.68 | 0.67 | 0.28 | 0.18 | — | — | — | — |
| Working capital | $3.13B | $1.62B | $1.13B | $738M | -$198M | — | — | — | — |
| Working capital / revenue | +13.47% | +7.00% | +4.42% | +2.85% | -0.74% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 10.12x | 10.00x |
| Earnings yield | 3.9% | 3.9% |
| FCF yield | 3.3% | 3.2% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | -478.4% | -216.6% |
| ROA | 14.4% | 14.9% |
| ROIC | 17.4% | 17.9% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 3.69 | 3.65 |
| Interest coverage | — | — |
| Current ratio | 0.95x | 1.19x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).