MCDNEUTRAL

MCD Current Ratio Analysis

1.14x

Updated 48h ago·SEC filings & market data

Key Takeaway

The current ratio of 1.14x means that McDonald's has $1.14 in current assets (like cash and inventory) for every $1 of short-term liabilities due within a year, indicating a modest ability to cover near-term debts.

Sector Performance

44th percentile

MCD

1.14x

Sector Median

1.20x

Sector Avg

2.57x

Prior Period

0.95x(Apr 2026)

↑ Improving
📊

Deep Analysis

The current ratio of 1.14x means that McDonald's has $1.14 in current assets (like cash and inventory) for every $1 of short-term liabilities due within a year, indicating a modest ability to cover near-term debts.

This sits slightly below the sector median of 1.20x, placing the company at the 44th percentile among peers—meaning 56% of competitors have a higher ratio. The year-over-year and quarter-over-quarter changes are both listed as N/A, so there is no trend data to assess movement. With a ratio below the median and no directional trend, the level alone suggests a relatively average liquidity position without clear improvement or deterioration, implying neither a distinct risk nor a special opportunity from this metric alone. This neutral liquidity profile aligns with the overall NEUTRAL verdict, as it does not point to a compelling strength or weakness that would shift the stock’s assessment.

Frequently Asked Questions

What does the Current Ratio tell investors about MCD?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are MCD's closest peers by Current Ratio?

The closest peers by Current Ratio include: GEN (0.40x), USB (0.40x), CHTR (0.40x), DRI (0.39x), WFC (0.34x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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MCD

1.14x

Sector Median

1.20x

Sector Avg

2.57x

How MCD's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.