McDonald's Corporation — Earnings Quality Grade F
MCD · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
Insufficient data
AR growth 17.6% exceeds revenue growth 1.7%
Insufficient data
Expense Quality
Inventory growth 5.7%, COGS data unavailable
Insufficient data
Insufficient data
Gross margin 56.8%, change -0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.17. Profits backed by cash
Insufficient data
Insufficient data
Cash $1.1B covers only 2% of debt $51.9B
Balance Sheet Health
Goodwill+Intangibles $3.1B = -83% of equity. Manageable
Insufficient data
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25