Mondelez International Inc (MDLZ)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 22,252,000 | 20,184,000 | 17,466,000 | 16,135,000 | 15,531,000 |
| Payables | US$ in thousands | 8,321,000 | 7,562,000 | 6,730,000 | 6,209,000 | 5,853,000 |
| Payables turnover | 2.67 | 2.67 | 2.60 | 2.60 | 2.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $22,252,000K ÷ $8,321,000K
= 2.67
The payables turnover of Mondelez International Inc. has remained relatively stable over the past five years, ranging between 2.60 and 2.67. This indicates that the company is efficient in managing its accounts payables by effectively paying off its suppliers within a certain period.
A payables turnover ratio of around 2.60 to 2.67 suggests that Mondelez International is able to negotiate favorable credit terms with its suppliers and efficiently convert its accounts payables into cash. This can contribute to better cash flow management and potentially lower financing costs for the company.
Overall, the consistent and relatively high payables turnover ratios indicate that Mondelez International has a well-managed accounts payable system, which is essential for maintaining good supplier relationships and managing working capital effectively.
Peer comparison
Dec 31, 2023