McDonalds Z Score

MCD
 Stock
  

USD 245.95  1.99  0.80%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Additionally, see McDonalds Corp Piotroski F Score and McDonalds Corp Valuation analysis.
  

McDonalds Z Score Analysis

McDonalds Corp's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current McDonalds Corp Z Score

    
  3.2  
Most of McDonalds Corp's fundamental indicators, such as Z Score, 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 Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, McDonalds Corp has a Z Score of 3.2. This indicator is about the same for the Consumer Cyclical average (which is currently at 3.23) sector and 30.59% lower than that of the Restaurants industry. The z score for all United States stocks is 63.3% higher than that of the company.

McDonalds Corp Institutional Holders

Institutional Holdings refers to the ownership stake in McDonalds Corp that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of McDonalds Corp's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing McDonalds Corp's value.
Security TypeSharesValue
Vanguard Group IncCommon Shares67.2 M16.6 B
Blackrock IncCommon Shares49.9 M12.3 B
State Street CorpCommon Shares34.3 M8.5 B
Wellington Management Group LlpCommon Shares19.7 M4.9 B
Jpmorgan Chase CoCommon Shares19.6 M4.8 B
Geode Capital Management LlcCommon Shares13.4 M3.3 B
Morgan StanleyCommon Shares12.7 M3.1 B

McDonalds Fundamentals

About McDonalds Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze McDonalds Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds Corp 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.
McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is headquartered in Chicago, Illinois. McDonalds Corp operates under Restaurants classification in the United States and is traded on New York Stock Exchange. It employs 100000 people.

McDonalds Corp Implied Volatility

    
  25.85  
McDonalds Corp's implied volatility exposes the market's sentiment of McDonalds Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds Corp's 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 Corp stock will not fluctuate a lot when McDonalds Corp's 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 Corp 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 Corp's short interest history, or implied volatility extrapolated from McDonalds Corp 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 Corp 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.

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Additionally, see McDonalds Corp Piotroski F Score and McDonalds Corp Valuation analysis. Note that the McDonalds Corp information on this page should be used as a complementary analysis to other McDonalds Corp's 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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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When running McDonalds Corp price analysis, check to measure McDonalds Corp's 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 Corp is operating at the current time. Most of McDonalds Corp's value examination focuses on studying past and present price action to predict the probability of McDonalds Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds Corp's price. Additionally, you may evaluate how the addition of McDonalds Corp to your portfolios can decrease your overall portfolio volatility.
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Is McDonalds Corp's 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 Corp. 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 Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of McDonalds Corp 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 Corp's value that differs from its market value or its book value, called intrinsic value, which is McDonalds Corp's 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 Corp's market value can be influenced by many factors that don't directly affect McDonalds Corp's 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 Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds Corp's 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.