McDonald's Corporation is a leading global fast-food chain known for its hamburgers, fries, and beverages. The company was founded in 1940 and is headquartered in Chicago, Illinois. McDonald's has established a strong presence worldwide with its extensive network of restaurants and a commitment to quality and customer service.
The cash flow statement provides insights into how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to assess how a company manages its cash resources.
The chart above illustrates the cash flow of McDonald's Corporation in 2023. The width of the bars signifies the amount of cash flow, with wider bars representing larger amounts.
We begin on the left with the company's cash position at the start of the year. Throughout the year, the cash position increased, indicating that the company effectively managed its cash resources. The cash flow from operating activities is the most significant source of cash, while investing activities resulted in a cash outflow.
The cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.
After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.
To illustrate the scale of McDonald's Corporation's cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.
This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2023. The counter is designed to provide a sense of the scale of the company's cash flow and its rapid movement.
In 2023, McDonald's Corporation generated $9,611.9 million in cash from operating activities, spent $3,184.5 million on investing activities, and used $4,374.1 million for financing activities. Consequently, the company's cash balance increased by $1,995.5 million during the year.
The company's beginning cash balance was $2,583.8 million. This amount typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $4,579.3 million.
The company's capital expenditures for the year were $2,357.4 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $7,254.5 million in 2023. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.
| Cash Flow from Operations | 9,611,900 |
| Cash Flow from Investing | -3,184,500 |
| Cash Flow from Financing | -4,374,100 |
| Changes in Cash | 2,053,300 |
| Effect of Exchange Rate Changes | -57,800 |
| Beginning Cash Position | 2,583,800 |
| Ending Cash Position | 4,579,300 |
| Capital Expenditures | -2,357,400 |
| Free Cash Flow | 7,254,500 |
All amounts in USD (Thousands)
In 2023, McDonald's Corporation demonstrated strong cash flow management, with a significant increase in its cash position by the end of the year. The company generated substantial cash from its operating activities, which more than offset the cash outflows from investing and financing activities. The increase in free cash flow highlights McDonald's ability to fund its capital expenditures while still having ample cash available for shareholder returns and strategic investments.
Dive deeper into McDonalds Corporation financials and explore our other analysis pages.
