McDonald's (BSP:MCDC34) Inventory Turnover : 55.74 (As of Mar. 2024)

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What is McDonald's Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. McDonald's's Cost of Goods Sold for the three months ended in Mar. 2024 was R$13,595 Mil. McDonald's's Average Total Inventories for the quarter that ended in Mar. 2024 was R$244 Mil. McDonald's's Inventory Turnover for the quarter that ended in Mar. 2024 was 55.74.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. McDonald's's Days Inventory for the three months ended in Mar. 2024 was 1.64.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. McDonald's's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.01.

McDonald's Inventory Turnover Historical Data

The historical data trend for McDonald's's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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McDonald's Inventory Turnover Chart

McDonald's Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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206.70

207.48

208.50

178.23

201.56

McDonald's Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															49.76	51.39	57.08	54.62	55.74

McDonald's Inventory Turnover Calculation

McDonald's's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	53560.694	/ (	(272.761	+	258.709)	/	2 )
=	53560.694	/	265.735
=	201.56

McDonald's's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	13594.854	/ (	(258.709	+	229.071)	/	2 )
=	13594.854	/	243.89
=	55.74

McDonald's (BSP:MCDC34) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

McDonald's's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	243.89	/	13594.854	*	365 / 4
	=	1.64

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

McDonald's's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	243.89	/	30720.386
	=	0.01

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

McDonald's Inventory Turnover Related Terms

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McDonald's (BSP:MCDC34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » McDonald's Corp (BSP:MCDC34) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

MCD:USA MCD:Mexico 1MCD:Italy MDOd:UK 0R16:UK MDO:Germany MCDS:Canada MCD:Austria MCD:Argentina

Address

110 North Carpenter Street, Chicago, IL, USA, 60607

Website

https://www.investor.mcdonalds.com

McDonald's is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion across more than 40,000 stores and 115 markets. McDonald's pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.

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