McDonald's Balance Sheet Health
Financial Health criteria checks 2/6
McDonald's has a total shareholder equity of $-5.2B and total debt of $39.6B, which brings its debt-to-equity ratio to -765.4%. Its total assets and total liabilities are $56.2B and $61.3B respectively. McDonald's's EBIT is $11.8B making its interest coverage ratio 8.8. It has cash and short-term investments of $1.2B.
Key information
-765.4%
Debt to equity ratio
US$39.63b
Debt
| Interest coverage ratio | 8.8x |
| Cash | US$1.23b |
| Equity | -US$5.18b |
| Total liabilities | US$61.35b |
| Total assets | US$56.17b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MCDS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: MCDS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: MCDS has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: MCDS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: MCDS's debt is well covered by operating cash flow (23.5%).
Interest Coverage: MCDS's interest payments on its debt are well covered by EBIT (8.8x coverage).