Mondelez International Inc (MDLZ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,810,000 | 1,923,000 | 3,546,000 | 3,619,000 | 1,291,000 |
| Short-term investments | US$ in thousands | — | — | — | 6,036 | 19,000 |
| Receivables | US$ in thousands | 4,512,000 | 3,907,000 | 3,188,000 | 2,954,000 | 2,927,000 |
| Total current liabilities | US$ in thousands | 19,013,000 | 16,731,000 | 14,008,000 | 15,159,000 | 15,322,000 |
| Quick ratio | 0.33 | 0.35 | 0.48 | 0.43 | 0.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,810,000K
+ $—K
+ $4,512,000K)
÷ $19,013,000K
= 0.33
The quick ratio of Mondelez International Inc. over the 5-year period has shown some variability but generally indicates the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio decreased from 0.33 in 2019 to 0.43 in 2023, with fluctuations in between.
A quick ratio of less than 1 suggests that the company may have difficulty meeting its short-term liabilities with its current quick assets alone. Mondelez's quick ratio has been consistently below 1 over the past five years, indicating potential liquidity concerns.
Even though the quick ratio has shown some improvement from 0.33 in 2019 to 0.43 in 2023, it is still below the ideal ratio of 1, which could raise questions about the company's ability to cover its short-term obligations without relying on selling inventory.
Further analysis of the company's cash management and inventory turnover may provide insights into the reasons behind the fluctuating quick ratio and help determine the effectiveness of Mondelez's liquidity management strategies over time.
Peer comparison
Dec 31, 2023