McDonalds Operating Income vs Gross Profit Analysis
MCD Stock | USD 301.37 2.39 0.80% |
McDonalds financial indicator trend analysis is infinitely more than just investigating McDonalds recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether McDonalds is a good investment. Please check the relationship between McDonalds Operating Income and its Gross Profit accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.
Operating Income vs Gross Profit
Operating Income vs Gross Profit Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of McDonalds Operating Income account and Gross Profit. At this time, the significance of the direction appears to have very strong relationship.
The correlation between McDonalds' Operating Income and Gross Profit is 0.81. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of McDonalds, assuming nothing else is changed. The correlation between historical values of McDonalds' Operating Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of McDonalds are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Operating Income i.e., McDonalds' Operating Income and Gross Profit go up and down completely randomly.
Correlation Coefficient | 0.81 |
Relationship Direction | Positive |
Relationship Strength | Strong |
Operating Income
Operating Income is the amount of profit realized from McDonalds operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of McDonalds is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Gross Profit
Gross profit is a required income statement account that reflects total revenue of McDonalds minus its cost of goods sold. It is profit before McDonalds operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.Most indicators from McDonalds' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into McDonalds current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.The current year's Enterprise Value is expected to grow to about 227 B, whereas Selling General Administrative is forecasted to decline to about 2.4 B.
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 12.6B | 13.2B | 14.6B | 8.7B | Total Revenue | 23.2B | 23.2B | 25.5B | 18.3B |
McDonalds fundamental ratios Correlations
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McDonalds Account Relationship Matchups
High Positive Relationship
High Negative Relationship
McDonalds fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 47.5B | 52.6B | 53.6B | 50.4B | 56.1B | 28.8B | |
Short Long Term Debt Total | 46.9B | 48.5B | 48.6B | 48.7B | 53.1B | 55.7B | |
Other Current Liab | 1.3B | 825.2M | 1.0B | 969.7M | 1.2B | 1.1B | |
Total Current Liabilities | 3.6B | 6.2B | 4.0B | 3.8B | 6.9B | 7.2B | |
Total Stockholder Equity | (8.2B) | (7.8B) | (4.6B) | (6.0B) | (4.7B) | (4.5B) | |
Property Plant And Equipment Net | 37.4B | 38.8B | 38.3B | 36.3B | 38.4B | 21.1B | |
Net Debt | 46.0B | 45.1B | 43.9B | 46.1B | 48.5B | 50.9B | |
Retained Earnings | 52.9B | 53.9B | 57.5B | 59.5B | 63.5B | 66.7B | |
Cash | 898.5M | 3.4B | 4.7B | 2.6B | 4.6B | 4.8B | |
Non Current Assets Total | 44.0B | 46.4B | 46.5B | 45.0B | 48.2B | 25.5B | |
Non Currrent Assets Other | 6.5B | 7.6B | 8.2B | 2.7B | 3.9B | 4.1B | |
Cash And Short Term Investments | 898.5M | 3.4B | 4.7B | 2.6B | 4.6B | 4.8B | |
Net Receivables | 2.2B | 2.1B | 1.9B | 2.1B | 2.5B | 2.6B | |
Common Stock Shares Outstanding | 764.9M | 750.1M | 751.8M | 741.3M | 732.3M | 956.0M | |
Liabilities And Stockholders Equity | 47.5B | 52.6B | 53.6B | 50.4B | 56.1B | 28.8B | |
Non Current Liabilities Total | 52.1B | 54.3B | 54.2B | 52.6B | 54.0B | 56.7B | |
Other Current Assets | 435.2M | 632.7M | 511.3M | 673.4M | 866.3M | 470.4M | |
Other Stockholder Equity | (58.7B) | (59.2B) | (59.6B) | (63.1B) | (65.7B) | (62.5B) | |
Total Liab | 55.7B | 60.5B | 58.2B | 56.4B | 60.9B | 63.9B | |
Total Current Assets | 3.6B | 6.2B | 7.1B | 5.4B | 8.0B | 8.4B | |
Short Term Debt | 680.1M | 3.6B | 1.4B | 1.3B | 3.6B | 1.9B | |
Intangible Assets | 3.3B | 3.5B | 3.6B | 3.8B | 836M | 794.2M | |
Accounts Payable | 988.2M | 741.3M | 1.0B | 980.2M | 1.1B | 806.9M | |
Good Will | 2.7B | 2.8B | 2.8B | 2.9B | 3.0B | 2.3B | |
Property Plant And Equipment Gross | 37.4B | 38.8B | 41.9B | 41.0B | 57.1B | 59.9B | |
Accumulated Other Comprehensive Income | (2.5B) | (2.6B) | (2.6B) | (2.5B) | (2.5B) | (2.6B) | |
Other Liab | 5.2B | 5.8B | 5.5B | 4.5B | 5.2B | 2.7B | |
Other Assets | 2.6B | 2.1B | 8.2B | 8.7B | 10.0B | 10.5B | |
Long Term Debt | 34.1B | 35.2B | 35.6B | 35.9B | 37.2B | 20.4B | |
Treasury Stock | (66.3B) | (67.1B) | (67.8B) | (71.6B) | (64.5B) | (61.2B) | |
Property Plant Equipment | 24.2B | 25.0B | 38.3B | 36.3B | 41.8B | 25.4B | |
Current Deferred Revenue | 660.6M | 702M | 738.3M | 757.8M | 790.1M | 776.1M | |
Net Tangible Assets | 1.9B | 2.7B | (4.6B) | 3.2B | 2.9B | 3.3B | |
Retained Earnings Total Equity | 52.9B | 53.9B | 57.5B | 59.5B | 68.5B | 47.0B | |
Short Term Investments | 14M | 1.3B | 300K | 4.3M | 4.9M | 4.7M | |
Long Term Debt Total | 34.1B | 35.2B | 35.6B | 35.9B | 41.3B | 26.6B | |
Capital Surpluse | 7.7B | 7.9B | 8.2B | 8.5B | 9.8B | 7.4B | |
Deferred Long Term Liab | 2.0B | 2.7B | 2.8B | 2.8B | 3.2B | 1.9B |
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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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 11.39 | 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.