McDonalds Net Invested Capital vs Long Term Debt Analysis
| MCDS Stock | 25.99 0.17 0.66% |
McDonalds Corp financial indicator trend analysis is infinitely more than just investigating McDonalds Corp CDR recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether McDonalds Corp CDR is a good investment. Please check the relationship between McDonalds Corp Net Invested Capital and its Long Term Debt accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds Corp CDR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Net Invested Capital vs Long Term Debt
Net Invested Capital vs Long Term Debt Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of McDonalds Corp CDR Net Invested Capital account and Long Term Debt. At this time, the significance of the direction appears to have almost identical trend.
The correlation between McDonalds Corp's Net Invested Capital and Long Term Debt is 0.9. Overlapping area represents the amount of variation of Net Invested Capital that can explain the historical movement of Long Term Debt in the same time period over historical financial statements of McDonalds Corp CDR, assuming nothing else is changed. The correlation between historical values of McDonalds Corp's Net Invested Capital and Long Term Debt is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Invested Capital of McDonalds Corp CDR are associated (or correlated) with its Long Term Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Long Term Debt has no effect on the direction of Net Invested Capital i.e., McDonalds Corp's Net Invested Capital and Long Term Debt go up and down completely randomly.
Correlation Coefficient | 0.9 |
| Relationship Direction | Positive |
| Relationship Strength | Very Strong |
Net Invested Capital
The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.Long Term Debt
Long-term debt is a debt that McDonalds Corp CDR has held for over one year. Long-term debt appears on McDonalds Corp CDR balance sheet and also includes long-term leases. The most common forms of long term debt are bonds payable, long-term notes payable, mortgage payable, pension liabilities, and lease liabilities. In the corporate world, long-term debt is generally used to fund big-ticket items, such as machinery, buildings, and land. The total of long-term debt reported on McDonalds Corp CDR balance sheet is the sum of the balances of all categories of long-term debt. Debt that is not due within the current year and is often considered to be financing activities that are to be repaid over several years.Most indicators from McDonalds Corp's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into McDonalds Corp CDR 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 Corp CDR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. The current year's Selling General Administrative is expected to grow to about 2.6 B, whereas Tax Provision is forecasted to decline to about 1.8 B.
| 2021 | 2022 | 2023 | 2024 (projected) | Interest Expense | 1.2B | 1.2B | 1.4B | 1.4B | Interest Income | 9M | 44M | 186M | 195.3M |
McDonalds Corp fundamental ratios Correlations
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McDonalds Corp Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Pair Trading with McDonalds Corp
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 Corp 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 Corp will appreciate offsetting losses from the drop in the long position's value.Moving against McDonalds Stock
The ability to find closely correlated positions to McDonalds Corp 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 Corp 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 Corp - 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 Corp CDR to buy it.
The correlation of McDonalds Corp 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 Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if McDonalds Corp CDR 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 Corp 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.Other Information on Investing in McDonalds Stock
Balance Sheet is a snapshot of the financial position of McDonalds Corp CDR at a specified time, usually calculated after every quarter, six months, or one year. McDonalds Corp Balance Sheet has two main parts: assets and liabilities. Liabilities are the debts or obligations of McDonalds Corp and are divided into current liabilities and long term liabilities. An asset, on the other hand, is anything of value that can be converted into cash and which McDonalds currently owns. An asset can also be divided into two categories, current and non-current.