Mondelez International Inc (MDLZ)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 36,016,000 | 31,496,000 | 28,720,000 | 26,581,000 | 25,868,000 |
| Property, plant and equipment | US$ in thousands | 9,369,000 | 8,733,000 | 8,425,000 | 8,774,000 | 8,611,000 |
| Fixed asset turnover | 3.84 | 3.61 | 3.41 | 3.03 | 3.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $36,016,000K ÷ $9,369,000K
= 3.84
Mondelez International Inc.'s fixed asset turnover ratio has shown a generally increasing trend over the past five years, indicating improved efficiency in generating revenue from its investments in fixed assets. The ratio increased from 2.96 in 2019 to 3.72 in 2023, reaching its peak during the period. This suggests that the company has been successful in utilizing its fixed assets more effectively to generate sales.
A fixed asset turnover ratio of 3.72 in 2023 means that for every dollar invested in fixed assets, Mondelez generated $3.72 in sales. This indicates that the company has been able to efficiently utilize its fixed assets to generate revenue, which is a positive sign for investors and creditors.
Overall, the increasing trend in fixed asset turnover reflects Mondelez's ability to optimize its asset base and generate higher sales relative to investments in fixed assets over the years, highlighting the company's operational efficiency and potentially strong management of assets.
Peer comparison
Dec 31, 2023