McDonald's Balance Sheet Health
Financial Health criteria checks 2/6
McDonald's has a total shareholder equity of $-4.8B and total debt of $38.6B, which brings its debt-to-equity ratio to -799.8%. Its total assets and total liabilities are $53.8B and $58.6B respectively. McDonald's's EBIT is $11.8B making its interest coverage ratio 9.3. It has cash and short-term investments of $792.0M.
Key information
-799.8%
Debt to equity ratio
US$38.58b
Debt
| Interest coverage ratio | 9.3x |
| Cash | US$792.00m |
| Equity | -US$4.82b |
| Total liabilities | US$58.63b |
| Total assets | US$53.80b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MCD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: MCD 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: MCD has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: MCD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: MCD's debt is well covered by operating cash flow (24.9%).
Interest Coverage: MCD's interest payments on its debt are well covered by EBIT (9.3x coverage).