Mondelez International Inc (MDLZ)

Liquidity ratios

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
Current ratio 0.68 0.63 0.77 0.62 0.61 0.65 0.68 0.60 0.69 0.68 0.68 0.74 0.73 0.61 0.61 0.66 0.74 0.55 0.53 0.50
Quick ratio 0.32 0.29 0.24 0.33 0.31 0.33 0.42 0.35 0.40 0.38 0.40 0.48 0.84 0.35 0.37 0.43 0.46 0.29 0.31 0.28
Cash ratio 0.07 0.07 0.05 0.10 0.09 0.12 0.19 0.11 0.15 0.14 0.14 0.25 0.61 0.14 0.14 0.24 0.22 0.11 0.12 0.09

Mondelez International Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has been consistently below 1, indicating potential liquidity concerns. However, there has been a slight improvement in the current ratio in recent periods, reaching 0.68 as of December 31, 2024.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been below 1 for most of the period under review. This suggests that the company may have difficulties meeting its short-term obligations without relying on inventory sales. The quick ratio was at 0.32 as of December 31, 2024, showing a slight improvement from previous periods.

The cash ratio, which is the most conservative liquidity ratio, measuring the company's ability to cover its current liabilities with only cash and cash equivalents, has generally been low. As of December 31, 2024, the cash ratio was at 0.07, indicating that Mondelez may have limited cash reserves to cover immediate liabilities.

Overall, Mondelez International Inc's liquidity ratios demonstrate a need for careful monitoring and management of its short-term financial obligations to avoid potential liquidity challenges in the future. Additional measures may be necessary to improve the company's liquidity position and ensure it can meet its obligations in a timely manner.

See also:

Mondelez International Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle of Mondelez International Inc has exhibited a consistent trend of negative days, indicating efficient management of cash flows and working capital during the analyzed period.

The company's ability to convert its investments in raw materials into cash has been improving gradually, as seen from the decreasing cycle days over time. This signifies that Mondelez International is able to generate cash from its operations swiftly and effectively.

Notably, the cash conversion cycle reached its lowest point of -44.08 days on December 31, 2024, suggesting an efficient cash management system and effective working capital utilization. This implies that Mondelez International is able to quickly convert its inventory into sales and subsequently into cash, thus enhancing liquidity and financial health.

Overall, the consistently negative cash conversion cycle days indicate that Mondelez International has been successful in efficiently managing its working capital and cash flow operations, which is essential for the company's financial stability and growth.