McDonalds Pretax Profit Margin vs Gross Profit Margin Analysis

MCD Stock  USD 288.47  2.44  0.84%   
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 Pretax Profit Margin and its Gross Profit Margin 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.

Pretax Profit Margin vs Gross Profit Margin

Pretax Profit Margin vs Gross Profit Margin Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of McDonalds Pretax Profit Margin account and Gross Profit Margin. At this time, the significance of the direction appears to have fragmental relationship.
The correlation between McDonalds' Pretax Profit Margin and Gross Profit Margin is 0.47. Overlapping area represents the amount of variation of Pretax Profit Margin that can explain the historical movement of Gross Profit Margin in the same time period over historical financial statements of McDonalds, assuming nothing else is changed. The correlation between historical values of McDonalds' Pretax Profit Margin and Gross Profit Margin is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Pretax Profit Margin of McDonalds are associated (or correlated) with its Gross Profit Margin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit Margin has no effect on the direction of Pretax Profit Margin i.e., McDonalds' Pretax Profit Margin and Gross Profit Margin go up and down completely randomly.

Correlation Coefficient

0.47
Relationship DirectionPositive 
Relationship StrengthWeak

Pretax Profit Margin

Gross Profit Margin

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 Profit12.6B13.2B14.2B8.7B
Total Revenue23.2B23.2B25.5B18.3B

McDonalds fundamental ratios Correlations

0.710.020.59-0.350.990.70.780.420.990.650.420.66-0.870.75-0.090.43-0.750.750.560.020.590.560.850.620.7
0.71-0.210.71-0.660.70.890.850.60.690.690.60.77-0.740.92-0.310.02-0.880.920.73-0.060.20.190.480.80.51
0.02-0.21-0.210.62-0.06-0.410.020.21-0.03-0.470.21-0.02-0.06-0.350.730.690.24-0.340.190.670.030.610.4-0.280.43
0.590.71-0.21-0.40.590.770.790.480.590.570.480.76-0.570.76-0.030.24-0.730.80.68-0.160.060.220.520.90.52
-0.35-0.660.62-0.4-0.39-0.82-0.480.03-0.38-0.680.03-0.630.52-0.790.870.320.77-0.77-0.140.660.150.10.06-0.49-0.03
0.990.7-0.060.59-0.390.730.760.311.00.720.310.67-0.850.77-0.140.36-0.760.770.46-0.070.620.520.810.640.66
0.70.89-0.410.77-0.820.730.850.270.730.810.270.88-0.760.99-0.490.0-0.960.990.49-0.440.140.220.420.860.44
0.780.850.020.79-0.480.760.850.460.770.540.460.92-0.890.88-0.050.4-0.930.880.72-0.10.250.540.760.810.82
0.420.60.210.480.030.310.270.460.320.221.00.25-0.290.360.270.14-0.30.380.930.510.150.140.390.460.39
0.990.69-0.030.59-0.381.00.730.770.320.690.320.68-0.860.76-0.130.4-0.760.760.48-0.060.590.550.830.640.68
0.650.69-0.470.57-0.680.720.810.540.220.690.220.56-0.540.82-0.48-0.21-0.690.810.29-0.390.330.030.270.670.2
0.420.60.210.480.030.310.270.461.00.320.220.25-0.290.360.270.14-0.30.380.930.510.150.140.390.460.39
0.660.77-0.020.76-0.630.670.880.920.250.680.560.25-0.840.88-0.230.34-0.940.880.53-0.320.020.550.590.760.68
-0.87-0.74-0.06-0.570.52-0.85-0.76-0.89-0.29-0.86-0.54-0.29-0.84-0.80.18-0.470.89-0.8-0.550.14-0.37-0.61-0.8-0.55-0.83
0.750.92-0.350.76-0.790.770.990.880.360.760.820.360.88-0.8-0.450.04-0.971.00.56-0.360.20.250.480.850.5
-0.09-0.310.73-0.030.87-0.14-0.49-0.050.27-0.13-0.480.27-0.230.18-0.450.490.41-0.420.220.690.270.330.39-0.150.38
0.430.020.690.240.320.360.00.40.140.4-0.210.140.34-0.470.040.49-0.190.050.30.360.160.760.730.10.68
-0.75-0.880.24-0.730.77-0.76-0.96-0.93-0.3-0.76-0.69-0.3-0.940.89-0.970.41-0.19-0.97-0.560.36-0.15-0.39-0.56-0.78-0.62
0.750.92-0.340.8-0.770.770.990.880.380.760.810.380.88-0.81.0-0.420.05-0.970.58-0.350.190.260.490.870.51
0.560.730.190.68-0.140.460.490.720.930.480.290.930.53-0.550.560.220.3-0.560.580.360.150.310.580.620.63
0.02-0.060.67-0.160.66-0.07-0.44-0.10.51-0.06-0.390.51-0.320.14-0.360.690.360.36-0.350.360.260.170.26-0.210.19
0.590.20.030.060.150.620.140.250.150.590.330.150.02-0.370.20.270.16-0.150.190.150.260.210.590.080.45
0.560.190.610.220.10.520.220.540.140.550.030.140.55-0.610.250.330.76-0.390.260.310.170.210.750.240.72
0.850.480.40.520.060.810.420.760.390.830.270.390.59-0.80.480.390.73-0.560.490.580.260.590.750.470.92
0.620.8-0.280.9-0.490.640.860.810.460.640.670.460.76-0.550.85-0.150.1-0.780.870.62-0.210.080.240.470.41
0.70.510.430.52-0.030.660.440.820.390.680.20.390.68-0.830.50.380.68-0.620.510.630.190.450.720.920.41
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McDonalds Account Relationship Matchups

McDonalds fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets47.5B52.6B53.6B50.4B56.1B28.8B
Short Long Term Debt Total46.9B48.5B48.6B48.7B53.1B55.7B
Other Current Liab1.3B825.2M1.0B969.7M1.2B1.1B
Total Current Liabilities3.6B6.2B4.0B3.8B6.9B7.2B
Total Stockholder Equity(8.2B)(7.8B)(4.6B)(6.0B)(4.7B)(4.5B)
Property Plant And Equipment Net37.4B38.8B38.3B36.3B38.4B21.1B
Net Debt46.0B45.1B43.9B46.1B48.5B50.9B
Retained Earnings52.9B53.9B57.5B59.5B63.5B66.7B
Cash898.5M3.4B4.7B2.6B4.6B4.8B
Non Current Assets Total44.0B46.4B46.5B45.0B48.2B25.5B
Non Currrent Assets Other6.5B7.6B8.2B2.7B3.9B4.1B
Cash And Short Term Investments898.5M3.4B4.7B2.6B4.6B4.8B
Net Receivables2.2B2.1B1.9B2.1B2.5B2.6B
Common Stock Shares Outstanding764.9M750.1M751.8M741.3M732.3M956.0M
Liabilities And Stockholders Equity47.5B52.6B53.6B50.4B56.1B28.8B
Non Current Liabilities Total52.1B54.3B54.2B52.6B54.0B56.7B
Other Current Assets435.2M632.7M511.3M673.4M866.3M470.4M
Other Stockholder Equity(58.7B)(59.2B)(59.6B)(63.1B)(65.7B)(62.5B)
Total Liab55.7B60.5B58.2B56.4B60.9B63.9B
Total Current Assets3.6B6.2B7.1B5.4B8.0B8.4B
Short Term Debt680.1M3.6B1.4B1.3B3.6B1.9B
Intangible Assets3.3B3.5B3.6B3.8B836M794.2M
Accounts Payable988.2M741.3M1.0B980.2M1.1B806.9M
Good Will2.7B2.8B2.8B2.9B3.0B2.3B
Property Plant And Equipment Gross37.4B38.8B41.9B41.0B57.1B59.9B
Accumulated Other Comprehensive Income(2.5B)(2.6B)(2.6B)(2.5B)(2.5B)(2.6B)
Other Liab5.2B5.8B5.5B4.5B5.2B2.7B
Other Assets2.6B2.1B8.2B8.7B10.0B10.5B
Long Term Debt34.1B35.2B35.6B35.9B37.2B20.4B
Treasury Stock(66.3B)(67.1B)(67.8B)(71.6B)(64.5B)(61.2B)
Property Plant Equipment24.2B25.0B38.3B36.3B41.8B25.4B
Current Deferred Revenue660.6M702M738.3M757.8M790.1M776.1M
Net Tangible Assets1.9B2.7B(4.6B)3.2B2.9B3.3B
Retained Earnings Total Equity52.9B53.9B57.5B59.5B68.5B47.0B
Short Term Investments14M1.3B300K4.3M4.9M4.7M
Long Term Debt Total34.1B35.2B35.6B35.9B41.3B26.6B
Capital Surpluse7.7B7.9B8.2B8.5B9.8B7.4B
Deferred Long Term Liab2.0B2.7B2.8B2.8B3.2B1.9B

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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.