F
McDonald's Corporation — Earnings Quality Grade F
MCD · Consumer Cyclical
Major red flags
Revenue
$25.9B
2023
Net Income
$8.2B
2023
Gross Margin
56.8%
Free Cash Flow
$7.3B
01
Screening Summary
6
Passed
1
Watch
1
Failed
—
M-Score
02
Financial Trends
Revenue & Net Income ($B)
Margins (%)
03
18-Point Screening
01
Revenue Quality
—
A1DSO Change
Insufficient data
!
A2AR vs Revenue Growth
AR growth 17.6% exceeds revenue growth 1.7%
—
A3Revenue vs CFFO
Insufficient data
02
Expense Quality
✓
B1Inventory vs COGS
Inventory growth 5.7%, COGS data unavailable
—
B2CapEx vs Revenue
Insufficient data
—
B3SG&A Ratio
Insufficient data
✓
B4Gross Margin
Gross margin 56.8%, change -0.4pp. Stable
03
Cash Flow Quality
✓
C1CFFO vs Net Income
CFFO/NI = 1.17. Profits backed by cash
—
C2Free Cash Flow
Insufficient data
—
C3Accruals Ratio
Insufficient data
✗
C4Cash vs Debt
Cash $1.1B covers only 2% of debt $51.9B
04
Balance Sheet Health
✓
D1Goodwill + Intangibles
Goodwill+Intangibles $3.1B = -83% of equity. Manageable
—
D2Leverage
Insufficient data
—
D3Soft Asset Growth
Insufficient data
—
D4Asset Impairment
No write-off data
05
Acquisition Risk
✓
E1Serial Acquirer FCF
FCF after acquisitions positive
✓
E2Goodwill Surge
Goodwill+Intangibles change 3% YoY. Normal
06
Manipulation Score
—
F1Beneish M-Score
Insufficient data
05
Altman Z-Score
3.97
Safe Zone0 Distress1.102.605.0+ Safe
0.0134
Liquidity
1.2112
Cumulative profit
0
Operating efficiency
-0.0644
Leverage
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10