McDonalds Working Capital vs. Cash and Equivalents
| MCD Stock | USD 269.95 4.52 1.70% |
Working Capital | First Reported 2010-12-31 | Previous Quarter 0.0 | Current Value 0.0 | Quarterly Volatility 0.0 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.56 | 0.5562 |
|
| |||||
| Net Profit Margin | 0.35 | 0.3322 |
|
| |||||
| Operating Profit Margin | 0.48 | 0.4607 |
|
| |||||
| Pretax Profit Margin | 0.43 | 0.4127 |
|
| |||||
| Return On Assets | 0.088 | 0.1508 |
|
|
For McDonalds profitability analysis, we use financial ratios and fundamental drivers that measure the ability of McDonalds to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well McDonalds utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between McDonalds's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of McDonalds over time as well as its relative position and ranking within its peers.
McDonalds |
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 0.083 | Dividend Share 6.23 | Earnings Share 11.57 | Revenue Per Share 35.024 | Quarterly Revenue Growth 0.081 |
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.
McDonalds Cash and Equivalents vs. Working Capital Fundamental Analysis
McDonalds Cash and Equivalents vs. Working Capital
Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .
McDonalds |
| = | 1.13 B |
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
McDonalds | = | null |
Use McDonalds in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if McDonalds position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in McDonalds will appreciate offsetting losses from the drop in the long position's value.McDonalds Pair Trading
McDonalds Pair Trading Analysis
The ability to find closely correlated positions to McDonalds could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace McDonalds when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back McDonalds - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling McDonalds to buy it.
The correlation of McDonalds is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as McDonalds moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McDonalds moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for McDonalds can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your McDonalds position
In addition to having McDonalds in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Utilities Thematic Idea Now
Utilities
Highly leveraged corporations that deliver utilities such as power, water or gas to public or business. The Utilities theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Utilities Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation 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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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 the 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.
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |
To fully project McDonalds' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of McDonalds at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include McDonalds' income statement, its balance sheet, and the statement of cash flows.