Mondelez International Inc (MDLZ)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	6.16	5.78	5.66	5.82	5.97	5.71	6.12	6.33	6.45	5.84	5.67	6.13	6.10	5.59	5.84	6.49	6.10	5.69	5.73	5.96
Receivables turnover	7.98	8.25	9.02	7.63	8.06	8.70	9.39	7.92	9.01	8.52	9.56	8.18	9.00	8.57	9.92	7.89	8.84	8.10	8.88	7.27
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

To analyze Mondelez International Inc.'s activity ratios, we will focus on its inventory turnover, receivables turnover, and payables turnover ratios.

1. Inventory Turnover:
- Mondelez's inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 5.66 to 6.33. This indicates that the company is efficient in managing its inventory levels and converting inventory into sales.
- A higher turnover ratio suggests that Mondelez is selling its products quickly, which can lead to lower inventory holding costs and better cash flow management.

2. Receivables Turnover:
- The receivables turnover ratio shows how quickly Mondelez collects payments from its customers. The ratios have varied over the quarters, with values between 7.63 and 9.39. A higher turnover ratio implies that the company is efficient in collecting payments from customers.
- Mondelez's ability to collect receivables quickly is crucial for maintaining healthy cash flow and liquidity.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly Mondelez pays its suppliers. The values have been relatively consistent, ranging from 2.48 to 2.88. A higher payables turnover ratio may suggest that the company is managing its payables effectively.
- A lower payables turnover ratio could indicate that Mondelez is taking longer to pay its suppliers, which may impact its relationships with vendors and cash flow management.

Overall, analyzing Mondelez International Inc.'s activity ratios provides insights into the company's operational efficiency in managing its inventory, collecting receivables, and paying its suppliers.

Average number of days

		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
Days of inventory on hand (DOH)	days	59.30	63.10	64.51	62.67	61.14	63.87	59.63	57.63	56.59	62.49	64.38	59.55	59.88	65.35	62.49	56.24	59.83	64.15	63.75	61.24
Days of sales outstanding (DSO)	days	45.73	44.25	40.48	47.84	45.28	41.98	38.87	46.08	40.52	42.85	38.19	44.63	40.56	42.58	36.80	46.23	41.30	45.04	41.12	50.20
Number of days of payables	days	136.49	126.89	130.53	136.25	136.75	126.62	133.21	147.04	140.64	138.67	140.33	144.00	140.46	128.78	126.04	127.96	137.55	124.51	124.00	130.11

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

1. Days of Inventory on Hand (DOH):
- The DOH measures how long it takes for the company to sell its inventory. A lower number indicates efficient inventory turnover.
- Mondelez's DOH fluctuated over the quarters, ranging from a low of 57.63 days in Q1 2022 to a high of 64.51 days in Q2 2023.
- In general, Mondelez has been able to effectively manage its inventory levels, with DOH consistently staying within a reasonable range over the quarters.

2. Days of Sales Outstanding (DSO):
- The DSO reflects how long it takes for the company to collect payments from customers. A lower DSO signifies efficient collection of accounts receivable.
- Mondelez's DSO varied across quarters, with the lowest being 38.87 days in Q2 2022 and the highest reaching 47.84 days in Q1 2023.
- Overall, Mondelez has shown some fluctuation in its collection efficiency, but the DSO has generally remained within a manageable range.

3. Number of Days of Payables:
- This ratio indicates the number of days it takes for the company to pay its suppliers. A higher number suggests the company is taking longer to settle its payables.
- Mondelez's number of days of payables has remained relatively stable over the quarters, ranging from 126.62 days in Q3 2022 to 147.04 days in Q1 2022.
- The company has maintained a consistent payment period to suppliers, which may indicate its ability to effectively manage its cash flow and supplier relationships.

Overall, Mondelez International Inc. shows stability and efficiency in managing its inventory, accounts receivable, and accounts payable. By closely monitoring these activity ratios, the company can continue to optimize its working capital management for sustained financial health.

Long-term

	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
Fixed asset turnover	3.84	3.87	3.67	3.60	3.61	3.53	3.41	3.24	3.41	3.27	3.14	3.09	3.03	3.07	3.09	3.01	3.00	3.09	3.00	3.02
Total asset turnover	0.50	0.50	0.47	0.45	0.44	0.45	0.45	0.43	0.43	0.42	0.42	0.41	0.39	0.40	0.40	0.41	0.40	0.40	0.40	0.40

The fixed asset turnover ratio for Mondelez International Inc. has shown a relatively stable trend over the past eight quarters, ranging from 3.24 to 3.87. This ratio indicates that the company generates between $3.24 to $3.87 in sales revenue for every dollar invested in fixed assets. A higher fixed asset turnover ratio implies more efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also exhibited a stable pattern, with values fluctuating between 0.43 and 0.50 over the same period. This ratio reflects the company's ability to generate sales from its total asset base, with a higher ratio suggesting more effective asset utilization.

Comparing the two ratios, the fixed asset turnover ratio is consistently higher than the total asset turnover ratio. This indicates that Mondelez International is more efficient in utilizing its fixed assets to drive revenue compared to its total assets. Overall, the stable and relatively high fixed asset turnover ratios reflect the company's efficient management of its fixed assets to generate sales.