McDonald's Balance Sheet Health
Financial Health criteria checks 2/6
McDonald's has a total shareholder equity of $-4.7B and total debt of $39.4B, which brings its debt-to-equity ratio to -837.3%. Its total assets and total liabilities are $56.1B and $60.9B respectively. McDonald's's EBIT is $11.7B making its interest coverage ratio 10. It has cash and short-term investments of $4.6B.
Key information
-837.3%
Debt to equity ratio
US$39.41b
Debt
Interest coverage ratio | 10x |
Cash | US$4.58b |
Equity | -US$4.71b |
Total liabilities | US$60.85b |
Total assets | US$56.15b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MDO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: MDO 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: MDO has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: MDO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: MDO's debt is well covered by operating cash flow (24.4%).
Interest Coverage: MDO's interest payments on its debt are well covered by EBIT (10x coverage).