Mondelez International Inc (MDLZ)

Cash conversion cycle

		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
Cash conversion cycle	days	-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	-15.32	-19.13	-18.66

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.30 + 45.73 – 136.49
= -31.47

Mondelez International Inc. has shown fluctuations in its cash conversion cycle over the past eight quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and generate cash quickly.

In Q4 2023, Mondelez International Inc. had a cash conversion cycle of -31.47 days, indicating that the company was able to convert its investments into cash and receive cash from sales in a little over a month. This was an improvement compared to the previous quarter, where the company had a cash conversion cycle of -19.55 days.

Overall, the trend in the cash conversion cycle for Mondelez International Inc. has been negative over the past eight quarters, reflecting the company's ability to efficiently manage its working capital and convert inventory into cash. The company has been successful in optimizing its operations to generate cash flows from sales in a timely manner, which is a positive indicator of its financial health.