McDonalds financial leverage is the degree to which the firm utilises its fixed-income securities. Companies with high leverage are usually considered to be at financial risk. McDonalds financial risk is the risk to McDonalds stockholders that is caused by an increase in debt. In other words with a high degree of financial leverage come high interest payments which usually reduces Earnings Per Share (EPS). Please see also analysis of McDonalds Fundamentals Over Time.
The company has 31 B in debt with debt to equity (D/E) ratio of 4.35 . This implies that the company may be unable to create cash to meet all of its financial commitments. McDonalds Corporation has Current Ratio of 1.44 which is typical for the industry and considered as normal.
McDonalds Accumulated Other Comprehensive Income Over Time