Mondelez International Inc (MDLZ)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.68 | 0.62 | 0.60 | 0.74 | 0.66 |
| Quick ratio | 0.32 | 0.33 | 0.35 | 0.48 | 0.43 |
| Cash ratio | 0.07 | 0.10 | 0.11 | 0.25 | 0.24 |
Mondelez International Inc's liquidity ratios over the past five years show a mixed performance.
The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has shown some improvement over the period, increasing from 0.66 in 2020 to 0.68 in 2024. However, the ratio remains below 1, indicating that the company may have difficulties in meeting its current liabilities with its current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a slight increase from 0.43 in 2020 to 0.32 in 2024. This suggests that Mondelez International may have some challenges in meeting its short-term obligations without relying on selling inventory.
The cash ratio, which provides an even stricter measure of liquidity by considering only cash and cash equivalents to current liabilities, has decreased significantly from 0.24 in 2020 to 0.07 in 2024. This decline indicates that the company may currently have fewer liquid assets available to cover its short-term liabilities.
Overall, while there have been slight improvements in the current and quick ratios, the decreasing trend in the cash ratio raises some concerns about Mondelez International's ability to maintain its liquidity position in the coming years.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -44.05 | -31.47 | -30.33 | -43.53 | -40.02 |
The cash conversion cycle of Mondelez International Inc has shown fluctuations over the years based on the provided data. The company's cash conversion cycle was -40.02 days as of December 31, 2020, indicating that the company was efficiently managing its working capital. Subsequently, there was a slight increase in the cash conversion cycle to -43.53 days by December 31, 2021.
However, there was a significant improvement in the efficiency of the company's working capital management as the cash conversion cycle decreased to -30.33 days by December 31, 2022. This positive trend continued into the following year, with the cash conversion cycle recorded at -31.47 days by December 31, 2023.
By the end of December 31, 2024, Mondelez International Inc experienced a notable increase in its cash conversion cycle, which rose to -44.05 days. Although this figure is higher compared to the preceding years, it still indicates that the company is effectively managing its working capital and converting its inventory and receivables into cash efficiently.
Overall, the fluctuation in Mondelez International Inc's cash conversion cycle showcases the company's ability to adapt to changing market conditions while maintaining operational efficiency in managing its working capital.