Mondelez International Inc (MDLZ)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	62.13	70.45	61.70	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
Days of sales outstanding (DSO)	days	46.94	46.48	48.62	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
Number of days of payables	days	153.15	150.30	149.28	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
Cash conversion cycle	days	-44.08	-33.37	-38.96	-31.47	-19.55	-25.55	-25.74	-30.33	-20.77	-34.71	-43.33	-43.53	-33.33	-37.75	-39.82	-40.02	-20.86	-26.75	-25.49	-36.42

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.13 + 46.94 – 153.15
= -44.08

The cash conversion cycle of Mondelez International Inc has shown a fluctuating trend over the past few years based on the provided data. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

From December 31, 2019, to December 31, 2024, the company experienced a varied range of days in the cash conversion cycle, ranging from as low as -43.53 days to as high as -19.55 days. A negative cash conversion cycle indicates that the company's accounts payable turnover exceeds its inventory turnover, which may suggest efficient management of working capital.

Overall, in recent periods, the cash conversion cycle has generally remained negative, indicating good liquidity management and efficient utilization of resources in generating cash flows. However, it is essential for the company to closely monitor and manage this metric to sustain its operational efficiency and financial health.