Aureus
AExcellent

McDonald's Corporation(MCD)

A

Financial data as of Dec 31, 2024Improving · Consumer Discretionary

FCF Margin25.7%Free Cash Flow / Revenue
Cash Conversion114.9%Operating CF / Net Income
Free Cash Flow$6.7B
Revenue$25.9B
Net Cash-$50.9BNet debt position
Debt / FCF7.8xElevated debt burden
Current Ratio1.19Adequate short-term liquidity
YoY FCF Growth+24.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (7.8x)
→
+0.5Healthy FCF margin with manageable debt (25.7%, 7.8x)
→
+1Strong YoY FCF growth (24.5% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (25.7%)
  • Excellent cash conversion (115%)
  • Strong YoY FCF growth (+24.5%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Heavy debt position ($50.9B)
  • High debt-to-FCF ratio (7.8x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin25.7%
Net Margin31.7%
Operating CF Margin36.4%
CapEx Ratio10.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$50.9BNet debt position
Debt / FCF7.8xElevated debt burden
Current Ratio1.19Adequate liquidity
Debt / Equity0.00Low leverage

Quarterly FCF Trend

+24.5% YoYImproving (+24.5%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameMcDonald's Corporation
SectorConsumer Discretionary
Free Cash Flow$6.7B
Revenue$25.9B
Net Income$8.2B
Operating Cash Flow$9.4B
Capital Expenditure$2.8B
FCF Margin25.7%
Cash Conversion Rate114.9%
Net Margin31.7%
Total Debt$51.9B
Total Cash$1.1B
Net Cash-$50.9B
Current Ratio1.19
Debt / Equity0.00
Debt / FCF7.8x
YoY FCF Growth+24.5%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance

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