Mondelez International Inc (MDLZ)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	5.80	6.16	5.97	6.45	6.10
Receivables turnover	7.57	7.98	8.06	9.01	9.00
Payables turnover	2.35	2.67	2.67	2.60	2.60
Working capital turnover	—	—	—	—	—

Mondelez International Inc's inventory turnover ratio has shown a slight fluctuation over the past five years, with values ranging from 5.80 to 6.45. This indicates that the company effectively manages its inventory levels, with higher turnover ratios suggesting efficient inventory management.

The receivables turnover ratio has been on a declining trend from 9.01 in 2021 to 7.57 in 2024. This could imply that the company is taking longer to collect payments from its credit customers, which may potentially impact its cash flow and liquidity.

In terms of payables turnover, Mondelez International Inc has maintained a relatively stable ratio over the years, ranging between 2.35 and 2.67. A consistent payables turnover ratio signifies the company's ability to effectively manage its trade credit and payment terms with suppliers.

The absence of data for the working capital turnover ratio indicates that Mondelez International Inc may not heavily rely on working capital to support its operations or that the calculation of this ratio is not applicable or meaningful for the company's financial analysis.

Overall, while the company demonstrates efficient inventory management and stable payables turnover, the decreasing trend in receivables turnover raises a flag regarding its collection efficiency and potential impact on cash flows. Further analysis and monitoring of these ratios will be crucial for assessing Mondelez International Inc's operational efficiency and working capital management.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	62.97	59.30	61.14	56.59	59.88
Days of sales outstanding (DSO)	days	48.19	45.73	45.28	40.52	40.56
Number of days of payables	days	155.20	136.49	136.75	140.64	140.46

To analyze Mondelez International Inc's activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- Mondelez's DOH indicates the average number of days it takes for the company to sell its inventory. A lower DOH value is generally favorable as it suggests efficient inventory management.
- From 2020 to 2024, Mondelez's DOH fluctuated, with a decrease from 59.88 days in 2020 to 56.59 days in 2021, followed by an increase to 62.97 days in 2024. This indicates some variability in the company's inventory turnover efficiency.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for Mondelez to collect payment after a sale. A lower DSO is typically preferred as it signifies faster cash conversion.
- Mondelez's DSO remained relatively stable over the analyzed period, ranging from 40.52 days in 2021 to 48.19 days in 2024. While there was a slight increase, it is important to monitor any significant deviations that may impact the company's cash flow.

3. Number of Days of Payables:
- This metric reveals the average number of days Mondelez takes to pay its suppliers. A higher number indicates a longer period for settling payables.
- Mondelez's number of days of payables varied from 140.46 days in 2020 to 155.20 days in 2024, with fluctuations in between. A longer payables period can sometimes suggest better cash flow management, but it's essential to strike a balance to maintain healthy supplier relationships.

In conclusion, Mondelez International Inc's activity ratios demonstrate a mix of inventory management efficiency, collection speed, and payables management. Monitoring these ratios over time can provide insights into the company's operational effectiveness and cash flow dynamics.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	3.97	3.84	3.61	3.41	3.03
Total asset turnover	0.53	0.50	0.44	0.43	0.39

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. In the case of Mondelez International Inc, we will analyze two key long-term activity ratios - fixed asset turnover and total asset turnover based on the provided data.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how well a company is utilizing its fixed assets to generate sales. A higher ratio indicates more efficient utilization of fixed assets.
- Mondelez International Inc's fixed asset turnover has shown a positive trend from 3.03 in 2020 to 3.97 in 2024. This indicates an improvement in the company's efficiency in generating sales with its fixed assets over the years.
- The increasing trend suggests that Mondelez International Inc has been better at leveraging its fixed assets to drive revenue growth, which is a positive sign for investors and stakeholders.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company is using its total assets to generate sales. A higher ratio indicates better asset utilization efficiency.
- Mondelez International Inc's total asset turnover has also shown a positive trend, increasing from 0.39 in 2020 to 0.53 in 2024. This indicates improving efficiency in generating sales with its total assets.
- The increasing trend in total asset turnover suggests that the company has been more effective in utilizing all its assets, including fixed and current assets, to drive sales growth and create value for shareholders.

In summary, both the fixed asset turnover and total asset turnover ratios for Mondelez International Inc have shown positive trends over the years. The company's efficient utilization of fixed and total assets to drive sales growth demonstrates improved operational efficiency and effectiveness in generating revenue.