McDonalds Z Score
MCD Stock  USD 271.33 1.71 0.63% 
McDonalds  Z Score 
McDonalds Z Score Analysis
McDonalds' ZScore is a simple linear, multifactor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
More About Z Score  All Equity Analysis
2020  2021  2022  2023 (projected)  
Consolidated Income  4.73 B  7.55 B  6.18 B  6.44 B 
Direct Expenses  7.25 B  8.31 B  7.63 B  10.71 B 
Z Score  =  Sum Of   5 Factors 
Current McDonalds Z Score  4.4 
Most of McDonalds' fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, McDonalds is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
 
 
 
 

McDonalds Z Score Driver Correlations
Understanding the fundamental principles of building solid financial models for McDonalds is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since McDonalds' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of McDonalds' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of McDonalds' interrelated accounts and indicators.
Click cells to compare fundamentals
To calculate ZScore one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. ZScore can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with ZScores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a socalled 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Competition 
Based on the company's disclosures, McDonalds has a Z Score of 4.4. This is 36.22% higher than that of the Hotels, Restaurants & Leisure sector and 4.56% lower than that of the Consumer Discretionary industry. The z score for all United States stocks is 49.54% higher than that of the company.
McDonalds Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses McDonalds' direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of McDonalds could also be used in its relative valuation, which is a method of valuing McDonalds by comparing valuation metrics of similar companies.McDonalds is currently under evaluation in z score category among related companies.
McDonalds Current Valuation Drivers
We derive many important indicators used in calculating different scores of McDonalds from analyzing McDonalds' financial statements. These drivers represent accounts that assess McDonalds' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of McDonalds' important valuation drivers and their relationship over time.
2018  2019  2020  2021  2022  2023 (projected)  
Net Income Per Employee  28.21 K  29.39 K  23.59 K  37.73 K  41.18 K  44.43 K  
Revenue Per Employee  100.12 K  102.81 K  95.78 K  116.11 K  154.55 K  166.75 K  
Average Assets  33.32 B  46.5 B  50.96 B  52.39 B  49.77 B  49.25 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  10.28 B  10.76 B  9.11 B  12.18 B  10.9 B  11.64 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  10.28 B  10.76 B  9.11 B  12.18 B  10.9 B  11.64 B  
Earnings before Tax  7.82 B  8.02 B  6.14 B  9.13 B  7.83 B  8.57 B  
Average Equity  (5.91 B)  (7.54 B)  (8.76 B)  (5.83 B)  (6.23 B)  (6.4 B)  
Enterprise Value  166.21 B  193.08 B  207.49 B  244.82 B  237.48 B  218.23 B  
Free Cash Flow  4.39 B  5.88 B  4.65 B  7.21 B  5.53 B  5.71 B  
Invested Capital  57.72 B  87.87 B  91.69 B  91.69 B  89.85 B  83.99 B  
Invested Capital Average  57.19 B  84.86 B  90.14 B  90.7 B  88.62 B  82.37 B  
Market Capitalization  136.89 B  148.82 B  159.89 B  200.31 B  193.02 B  178.53 B  
Tangible Asset Value  30.48 B  44.83 B  49.85 B  51.07 B  47.54 B  46.97 B  
Working Capital  1.08 B  (63.1 M)  62 M  3.13 B  1.62 B  1.66 B 
McDonalds ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower socialengagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McDonalds' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McDonalds' managers, analysts, and investors.Environment Score  Governance Score  Social Score 
McDonalds Institutional Holders
Institutional Holdings refers to the ownership stake in McDonalds that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of McDonalds' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in highprofile magazines, and presentations at investor conferences help move the stock higher, increasing McDonalds' value.Last Transaction  Type  Shares  Value  
Vanguard Group Inc  20221231  Common Shares  68.2 M  18 B  
State Street Corp  20221231  Common Shares  34 M  9 B  
Wellington Management Group Llp  20221231  Common Shares  16.1 M  4.2 B  
Wells Fargo Company  20221231  Common Shares  7.9 M  2.1 B  
Ubs Group Ag  20221231  Common Shares  5.4 M  1.4 B  
Ubs Asset Management Americas Inc  20221231  Common Shares  3.3 M  857.2 M  
Swiss National Bank  20221231  Common Shares  3 M  788 M  
Sumitomo Mitsui Trust Holdings Inc  20221231  Common Shares  2.5 M  647.9 M  
Td Asset Management Inc  20221231  Common Shares  1.6 M  420.5 M  
Two Sigma Advisers Lp  20221231  Common Shares  1.6 M  414.6 M  
Us Bancorp  20221231  Common Shares  1.2 M  311.7 M 
McDonalds Fundamentals
Return On Asset  0.12 %  
Profit Margin  0.27 %  
Operating Margin  0.45 %  
Current Valuation  245.53 B  
Shares Outstanding  731.5 M  
Shares Owned by Insiders  0.17 %  
Shares Owned by Institutions  70.85 %  
Number of Shares Shorted  6.29 M  
Price to Earning  39.39 X  
Price to Sales  8.55 X  
Revenue  23.18 B  
Gross Profit  13.21 B  
EBITDA  9.4 B  
Net Income  6.18 B  
Cash and Equivalents  2.58 B  
Cash per Share  3.86 X  
Total Debt  35.9 B  
Debt to Equity  4.35 %  
Current Ratio  1.65 X  
Book Value Per Share  (8.22) X  
Cash Flow from Operations  7.39 B  
Short Ratio  2.31 X  
Earnings Per Share  8.38 X  
Price to Earnings To Growth  3.34 X  
Target Price  294.85  
Number of Employees  100 K  
Beta  0.62  
Market Capitalization  198.48 B  
Total Asset  50.44 B  
Retained Earnings  52.53 B  
Working Capital  6.69 B  
Current Asset  9.64 B  
Current Liabilities  2.95 B  
Z Score  4.4  
Annual Yield  0.0226 %  
Five Year Return  2.30 %  
Net Asset  50.44 B  
Last Dividend Paid  5.66 
About McDonalds Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze McDonalds's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is headquartered in Chicago, Illinois. McDonalds Corp operates under Restaurants classification in the United States and is traded on New York Stock Exchange. It employs 100000 people.
McDonalds Investors Sentiment
The influence of McDonalds' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decisionmaking process regarding taking a position in McDonalds. The overall investor sentiment generally increases the direction of a stock movement in a oneyear investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to McDonalds' public news can be used to forecast risks associated with investment in McDonalds. The trend in average sentiment can be used to explain how an investor holding McDonalds can time the market purely based on public headlines and social activities around McDonalds. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
McDonalds' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McDonalds' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average McDonalds' news discussions. The higher the estimated score, the more favorable is the investor's outlook on McDonalds.
McDonalds Implied Volatility  19.9 
McDonalds' implied volatility exposes the market's sentiment of McDonalds stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McDonalds stock will not fluctuate a lot when McDonalds' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards McDonalds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, McDonalds' short interest history, or implied volatility extrapolated from McDonalds options trading.
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as McDonalds using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
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Check out McDonalds Piotroski F Score and McDonalds Valuation analysis. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.
Complementary Tools for McDonalds Stock analysis
When running McDonalds price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
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Is McDonalds' industry 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 0.186  Dividend Share 5.66  Earnings Share 8.38  Revenue Per Share 31.477  Quarterly Revenue Growth (0.014) 
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 McDonalds value 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.