Mondelez International Inc (MDLZ)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		7.57	7.98	8.06	9.01	9.00
DSO	days	48.19	45.73	45.28	40.52	40.56

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.57
= 48.19

Mondelez International Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. From December 31, 2020, to December 31, 2021, the DSO remained relatively stable, showing a small decrease from 40.56 days to 40.52 days. This indicates efficient management of accounts receivable during this period.

However, there was a noticeable increase in DSO from December 31, 2021, to December 31, 2022, and further increases in the subsequent years. This rise suggests a slower collection of accounts receivable, which may be due to various factors such as changes in sales terms, customer payment behavior, or credit policies.

The upward trend in DSO from 2022 to 2024 highlights a potential concern in the company's liquidity position, as a higher DSO could lead to cash flow challenges and increased working capital requirements. Mondelez International Inc should closely monitor and address the reasons behind the extended collection period to maintain healthy cash flows and efficient operations.