McDonalds Return On Equity from 2010 to 2024

MCD Stock  USD 292.44  1.80  0.61%   
McDonalds' Return On Equity is decreasing over the years with slightly volatile fluctuation. Overall, Return On Equity is projected to go to -1.71 this year. Return On Equity is a measure of the profitability of McDonalds in relation to the equity, calculated by dividing net income by shareholder's equity. View All Fundamentals
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(1.80)
Current Value
(1.71)
Quarterly Volatility
0.97189143
 
Credit Downgrade
 
Yuan Drop
 
Covid
Check McDonalds financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among McDonalds' main balance sheet or income statement drivers, such as Depreciation And Amortization of 1.2 B, Interest Expense of 1.4 B or Total Revenue of 18.3 B, as well as many indicators such as Price To Sales Ratio of 8.89, Dividend Yield of 0.0149 or Days Sales Outstanding of 37.4. McDonalds financial statements analysis is a perfect complement when working with McDonalds Valuation or Volatility modules.
  
Check out the analysis of McDonalds Correlation against competitors.
For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.

Latest McDonalds' Return On Equity Growth Pattern

Below is the plot of the Return On Equity of McDonalds over the last few years. Return on Equity is the amount of McDonalds net income returned as a percentage of McDonalds equity. Return on equity measures McDonalds profitability by revealing how much profit McDonalds generates with the money shareholders have invested. It is a measure of the profitability of a business in relation to the equity, calculated by dividing net income by shareholder's equity. McDonalds' Return On Equity historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in McDonalds' overall financial position and show how it may be relating to other accounts over time.
ViewLast Reported 0.010 Years Trend
Slightly volatile
   Return On Equity   
       Timeline  

McDonalds Return On Equity Regression Statistics

Arithmetic Mean(0.66)
Coefficient Of Variation(147.52)
Mean Deviation0.84
Median(0.73)
Standard Deviation0.97
Sample Variance0.94
Range2.7651
R-Value(0.75)
Mean Square Error0.44
R-Squared0.57
Significance0
Slope(0.16)
Total Sum of Squares13.22

McDonalds Return On Equity History

2024 -1.71
2023 -1.8
2022 -1.03
2021 -1.64
2020 -0.6
2019 -0.73
2018 -0.95

About McDonalds Financial Statements

McDonalds stakeholders use historical fundamental indicators, such as McDonalds' Return On Equity, to determine how well the company is positioned to perform in the future. Although McDonalds investors may analyze each financial statement separately, they are all interrelated. For example, changes in McDonalds' assets and liabilities are reflected in the revenues and expenses on McDonalds' income statement, which ultimately affect the company's gains or losses. Understanding these patterns can help in making the right long-term investment decisions in McDonalds. Please read more on our technical analysis and fundamental analysis pages.
Last ReportedProjected for Next Year
Return On Equity(1.80)(1.71)

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports:
Check out the analysis of McDonalds Correlation against competitors.
For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Is Hotels, Restaurants & Leisure space 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
(0.01)
Dividend Share
6.68
Earnings Share
11.4
Revenue Per Share
36.01
Quarterly Revenue Growth
0.027
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 if McDonalds is a good investment 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.