Mondelez International Inc (MDLZ)

Payables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	22,252,000	22,028,000	21,643,000	21,123,000	20,184,000	19,389,000	18,597,000	17,975,000	17,466,000	17,067,000	16,582,000	16,151,000	16,135,000	15,863,000	15,829,000	15,842,000	15,531,000	15,601,000	15,636,000	15,615,000
Payables	US$ in thousands	8,321,000	7,658,000	7,740,000	7,885,000	7,562,000	6,726,000	6,787,000	7,241,000	6,730,000	6,484,000	6,375,000	6,372,000	6,209,000	5,597,000	5,466,000	5,554,000	5,853,000	5,322,000	5,312,000	5,566,000
Payables turnover		2.67	2.88	2.80	2.68	2.67	2.88	2.74	2.48	2.60	2.63	2.60	2.53	2.60	2.83	2.90	2.85	2.65	2.93	2.94	2.81

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $22,252,000K ÷ $8,321,000K
= 2.67

The payables turnover ratio for Mondelez International Inc. has been relatively stable over the past eight quarters, ranging from 2.48 to 2.88. This ratio indicates the number of times a company pays off its average accounts payable balance during a specific period.

A higher payables turnover ratio typically signifies that a company is more efficiently managing its trade credit, as it is able to pay off its suppliers more frequently. In the case of Mondelez, the ratios have been consistently above 2.5, indicating that the company manages its accounts payable effectively.

It is important to note that while a high payables turnover ratio can suggest strong cash flow management, it may also indicate strict payment terms with suppliers, potentially straining supplier relationships. Conversely, a low ratio could imply that the company is not effectively using its trade credit or may be experiencing cash flow difficulties.

Overall, based on the data provided, Mondelez International Inc. appears to be efficiently managing its accounts payable, with a stable trend in payables turnover ratios over the past two years.