# McDonalds Working Capital

MCD | Stock | ## USD 273.40 0.61 0.22% |

McDonalds fundamentals help investors to digest information that contributes to McDonalds' financial success or failures. It also enables traders to predict the movement of McDonalds Stock. The fundamental analysis module provides a way to measure McDonalds' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to McDonalds stock.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools. McDonalds | Working Capital |

**B**, whereas Invested Capital is forecasted to decline to about 82.2

**B**.

## McDonalds Working Capital Analysis

McDonalds' Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .## McDonalds Working Capital | ## 3.38 Billion |

Working Capital | = | Current Assets | - | Current Liabilities |

## Current McDonalds Working Capital | 6.69 B |

Most of McDonalds' fundamental indicators, such as Working Capital, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, McDonalds is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

## McDonalds Working Capital Driver Correlations

Understanding the fundamental principles of building solid financial models for McDonalds is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Working Capital. Since McDonalds' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of McDonalds' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of McDonalds' interrelated accounts and indicators.

## McDonalds Working Capital Historical Pattern

Today, most investors in McDonalds Stock are looking for potential investment opportunities by analyzing not only static indicators but also various McDonalds' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's working capital growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of McDonalds working capital as a starting point in their analysis.

McDonalds Working Capital |

Share

Timeline |

Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.

Compare to competition |

## McDonalds Capital Expenditure

## Capital Expenditure | ## (2.09 Billion) |

Based on the company's disclosures, McDonalds has a Working Capital of 6.69

**B**. This is 11.99% higher than that of the Hotels, Restaurants & Leisure sector and notably lower than that of the Consumer Discretionary industry. The working capital for all United States stocks is significantly lower than that of the firm.## McDonalds Working Capital Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses McDonalds' direct or indirect competition against its Working Capital to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of McDonalds could also be used in its relative valuation, which is a method of valuing McDonalds by comparing valuation metrics of similar companies.McDonalds is currently under evaluation in working capital category among related companies.

## McDonalds Current Valuation Drivers

We derive many important indicators used in calculating different scores of McDonalds from analyzing McDonalds' financial statements. These drivers represent accounts that assess McDonalds' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of McDonalds' important valuation drivers and their relationship over time.

2017 | 2018 | 2019 | 2020 | 2021 | 2022 (projected) | ||

Net Income Per Employee | 22.09 K | 28.21 K | 29.39 K | 23.59 K | 37.73 K | 40.7 K | |

Revenue Per Employee | 97.11 K | 100.12 K | 102.81 K | 95.78 K | 116.11 K | 94.59 K | |

Average Assets | 32.82 B | 33.32 B | 46.5 B | 50.96 B | 52.39 B | 49.73 B | |

Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 10.54 B | 9.95 B | 10.38 B | 8.71 B | 11.67 B | 10.24 B | |

Earnings Before Interest Taxes and Depreciation Amortization USD | 10.86 B | 10.28 B | 10.76 B | 9.11 B | 12.18 B | 12.26 B | |

Earnings before Tax | 8.57 B | 7.82 B | 8.02 B | 6.14 B | 9.13 B | 9.27 B | |

Average Equity | (2.69 B) | (5.91 B) | (7.54 B) | (8.76 B) | (5.83 B) | (5.98 B) | |

Enterprise Value | 163.16 B | 166.21 B | 193.08 B | 207.49 B | 244.82 B | 215.54 B | |

Free Cash Flow | 3.86 B | 4.39 B | 5.88 B | 4.65 B | 7.21 B | 6.54 B | |

Invested Capital | 55.61 B | 57.72 B | 87.87 B | 91.69 B | 91.69 B | 82.18 B | |

Invested Capital Average | 53.26 B | 57.19 B | 84.86 B | 90.14 B | 90.7 B | 80.68 B | |

Market Capitalization | 137.21 B | 136.89 B | 148.82 B | 159.89 B | 200.31 B | 177.62 B | |

Tangible Asset Value | 31.42 B | 30.48 B | 44.83 B | 49.85 B | 51.07 B | 47.93 B | |

Working Capital | 2.44 B | 1.08 B | (63.1 M) | 62 M | 3.13 B | 3.38 B |

## McDonalds ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McDonalds' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McDonalds' managers, analysts, and investors.Environment Score | Governance Score | Social Score |

## McDonalds Fundamentals

Return On Equity | (100,000) % | |||

Return On Asset | 0.13 % | |||

Profit Margin | 0.25 % | |||

Operating Margin | 0.44 % | |||

Current Valuation | 245.88 B | |||

Shares Outstanding | 732.42 M | |||

Shares Owned by Insiders | 0.16 % | |||

Shares Owned by Institutions | 70.04 % | |||

Number of Shares Shorted | 6.53 M | |||

Price to Earning | 39.39 X | |||

Price to Sales | 8.61 X | |||

Revenue | 23.22 B | |||

Gross Profit | 12.58 B | |||

EBITDA | 10.64 B | |||

Net Income | 7.55 B | |||

Cash and Equivalents | 4.71 B | |||

Cash per Share | 3.86 X | |||

Total Debt | 35.62 B | |||

Debt to Equity | 4.35 % | |||

Current Ratio | 1.65 X | |||

Book Value Per Share | (8.97) X | |||

Cash Flow from Operations | 9.14 B | |||

Short Ratio | 1.90 X | |||

Earnings Per Share | 7.94 X | |||

Price to Earnings To Growth | 3.34 X | |||

Target Price | 288.6 | |||

Number of Employees | 100 K | |||

Beta | 0.65 | |||

Market Capitalization | 199.8 B | |||

Total Asset | 53.61 B | |||

Retained Earnings | 52.53 B | |||

Working Capital | 6.69 B | |||

Current Asset | 9.64 B | |||

Current Liabilities | 2.95 B | |||

Z Score | 3.8 | |||

Annual Yield | 0.0223 % | |||

Five Year Return | 2.30 % | |||

Net Asset | 53.61 B | |||

Last Dividend Paid | 5.52 |

## About McDonalds Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze McDonalds's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.Last Reported | Projected for 2022 | ||

Working Capital | 3.1 B | 3.4 B | |

Invested Capital | 91.7 B | 82.2 B | |

Invested Capital Average | 90.7 B | 80.7 B | |

Market Capitalization | 200.3 B | 177.6 B |

## McDonalds Investors Sentiment

The influence of McDonalds' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in McDonalds. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Investor biases related to McDonalds' public news can be used to forecast risks associated with investment in McDonalds. The trend in average sentiment can be used to explain how an investor holding McDonalds can time the market purely based on public headlines and social activities around McDonalds. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

McDonalds' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McDonalds' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average McDonalds' news discussions. The higher the estimated score, the more favorable is the investor's outlook on McDonalds.

## McDonalds Implied Volatility | 31.24 |

McDonalds' implied volatility exposes the market's sentiment of McDonalds stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McDonalds stock will not fluctuate a lot when McDonalds' options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards McDonalds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, McDonalds' short interest history, or implied volatility extrapolated from McDonalds options trading.

## Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as McDonalds using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.## Build Optimal Portfolios

### Align your risk with return expectations

Additionally, see McDonalds Piotroski F Score and McDonalds Altman Z Score analysis. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

## Complementary Tools for McDonalds Stock analysis

When running McDonalds price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.

Portfolio HoldingsCheck your current holdings and cash postion to detemine if your portfolio needs rebalancing | Go | |

Portfolio VolatilityCheck portfolio volatility and analyze historical return density to properly model market risk | Go | |

Fundamentals ComparisonCompare fundamentals across multiple equities to find investing opportunities | Go | |

Equity ValuationCheck real value of public entities based on technical and fundamental data | Go | |

Pair CorrelationCompare performance and examine fundamental relationship between any two equity instruments | Go |

Is McDonalds' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth YOY (0.06) | Market Capitalization 199.8 B | Quarterly Revenue Growth YOY (0.05) | Return On Assets 0.13 | Return On Equity -100 K |

The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.