Question: is this true: The net worth method is the difference between assets and liabilities. In the McDonald's FY 2024 Balance Sheet, assets = $55.18B and
is this true: The net worth method is the difference between assets and liabilities. In the McDonald's FY 2024 Balance Sheet, assets = $55.18B and liabilities = $58.98B, leaving equity = $3.80B (Yahoo Finance, 2025). Such negative equity is due primarily to large treasury stock repurchases and a leveraged capital structure, not to operational underperformance. This illustrates the downside of book value in corporate valuation.
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