McDonald's Corporation (NYSE:MCD) was trading at around $232 on October 5, down 21.67% over twelve months and close to its 52-week low of $229.20. Its book value per share is negative $1.45. On paper, the company's liabilities exceed its assets. That is not distress. It is the result of a decision taken repeatedly over many years. READ ALSO: Costco (COST) vs Walmart (WMT): Which is a Better Stock to Buy?McDonald's (MCD) Has Negative Shareholder Equity. Here is Why That Is Deliberate The Equity Was Bought Back, Not Lost: A company erases its own equity in one of two ways. It loses money for years, or it buys back stock. McDonald's earned $8.79 billion on a 31.72% net margin, so it is not the first.
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