Mondelez International Inc (MDLZ)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	62.97	59.30	61.14	56.59	59.88
Days of sales outstanding (DSO)	days	48.19	45.73	45.28	40.52	40.56
Number of days of payables	days	155.20	136.49	136.75	140.64	140.46
Cash conversion cycle	days	-44.05	-31.47	-30.33	-43.53	-40.02

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.97 + 48.19 – 155.20
= -44.05

The cash conversion cycle, which measures the time it takes for a company to convert its investment in inventory and other resources into cash inflows from sales, has exhibited some fluctuations in the case of Mondelez International Inc in recent years.

- As of December 31, 2020, the company's cash conversion cycle was -40.02 days, indicating that Mondelez was efficiently managing its working capital and able to generate cash from its operations before having to pay its suppliers.
- By December 31, 2021, the cash conversion cycle had increased slightly to -43.53 days, which suggests a small delay in the conversion of inventory and payables into cash receipts.
- In the following year, as of December 31, 2022, the cycle decreased significantly to -30.33 days, indicating an improvement in the company's cash management efficiency.
- However, by the end of December 31, 2023, the cash conversion cycle ticked up to -31.47 days, suggesting a marginal increase in the time it takes for Mondelez to convert its resources into cash.
- The most recent data available as of December 31, 2024, shows a further increase in the cycle to -44.05 days, indicating a longer period for the company to realize cash from its operating activities.

Overall, although the cash conversion cycle has displayed some fluctuations over the years, with periods of improvement followed by slight setbacks, Mondelez International Inc generally maintains a negative cycle, signaling efficient management of working capital and effective cash flow operations.