Mondelez International Inc (MDLZ)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.50 | 0.44 | 0.48 |
| Quick ratio | 0.33 | 0.31 | 0.33 | 0.42 | 0.35 | 0.40 | 0.38 | 0.40 | 0.48 | 0.84 | 0.34 | 0.37 | 0.43 | 0.46 | 0.29 | 0.31 | 0.28 | 0.28 | 0.23 | 0.29 |
| Cash ratio | 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 | 0.11 | 0.08 | 0.09 | 0.07 | 0.09 |
Mondelez International Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to pay off its short-term liabilities with its current assets, has shown a declining trend throughout the quarters, from 0.69 in Q3 2022 to 0.62 in Q4 2023. This decreasing trend suggests a potential vulnerability in the company's ability to cover its short-term obligations.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also deteriorated over the quarters, dropping from 0.46 in Q3 2022 to 0.43 in Q4 2023. Similarly, the decreasing trend in the quick ratio indicates that the company may face difficulties in meeting its immediate payment obligations without relying on inventory.
The cash ratio, the most conservative liquidity measure, which evaluates the company's ability to cover its short-term liabilities with only cash and cash equivalents, shows a similar downward trend. Mondelez International Inc.'s cash ratio decreased from 0.21 in Q3 2022 to 0.19 in Q4 2023. This indicates a potential risk in the company's immediate debt payment capacity.
Overall, the declining liquidity ratios suggest that Mondelez International Inc. may be experiencing challenges in maintaining sufficient liquid assets to meet its short-term financial obligations. It is essential for the company to closely monitor and manage its liquidity position to ensure financial stability and operational continuity.
See also:
Mondelez International Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Mondelez International Inc. has fluctuated over the past eight quarters. The company's cash conversion cycle measures the time it takes to convert its investments in inventory into cash collected from customers.
In the most recent quarter (Q4 2023), Mondelez had a cash conversion cycle of -31.47 days, indicating that the company is able to generate cash quickly from its sales and reduce the time it takes to collect payments from customers. This represents an improvement compared to the previous quarter (Q3 2023) where the cash conversion cycle was -19.55 days.
Overall, Mondelez has shown a generally efficient cash conversion cycle in the past eight quarters, with most quarters reflecting negative values, indicating a shorter conversion cycle. This suggests that Mondelez is effectively managing its working capital, inventory, and accounts receivable to optimize cash flow and liquidity.
It's important to continue monitoring Mondelez's cash conversion cycle to ensure the company maintains efficient operations and effectively manages its working capital for sustained financial health and growth.