Mondelez International Inc (MDLZ)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.12% | 38.22% | 35.92% | 39.19% | 39.30% |
| Operating profit margin | 17.41% | 15.28% | 11.22% | 16.20% | 14.50% |
| Pretax margin | 16.68% | 18.04% | 11.37% | 19.12% | 17.98% |
| Net profit margin | 12.65% | 13.77% | 8.63% | 14.97% | 13.37% |
Mondelez International Inc's profitability ratios over the five-year period indicate fluctuating trends. The gross profit margin, which represents the percentage of revenue retained after deducting the cost of goods sold, decreased from 39.30% in 2020 to 35.92% in 2022, before recovering to 39.12% in 2024.
The operating profit margin, reflecting the percentage of revenue left after subtracting both COGS and operating expenses, experienced fluctuations as well. It increased from 14.50% in 2020 to 16.20% in 2021, dropped to 11.22% in 2022, and then showed an upward trend to reach 17.41% in 2024.
Similarly, the pretax margin, indicating the portion of revenue remaining after deducting all expenses except income taxes, saw variations. It rose from 17.98% in 2020 to 19.12% in 2021, declined sharply to 11.37% in 2022, before recovering to 16.68% in 2024.
The net profit margin, which shows the percentage of revenue remaining after all expenses, including taxes, saw a similar pattern of fluctuations. It increased from 13.37% in 2020 to 14.97% in 2021, then dropped to 8.63% in 2022, and finally rebounded to 12.65% in 2024.
Overall, these profitability ratios indicate that Mondelez International Inc faced certain challenges in maintaining consistent profitability over the period, with fluctuations in margins that may have been influenced by various factors such as changes in costs, expenses, and revenue streams.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.26% | 7.71% | 4.97% | 6.94% | 5.68% |
| Return on assets (ROA) | 6.73% | 6.95% | 3.82% | 6.41% | 5.24% |
| Return on total capital | 23.56% | 19.42% | 13.15% | 16.46% | 13.97% |
| Return on equity (ROE) | 17.12% | 17.50% | 10.11% | 15.21% | 12.89% |
Mondelez International Inc has shown a positive trend in its profitability ratios over the past five years.
1. Operating return on assets (Operating ROA) has increased consistently from 5.68% in December 2020 to 9.26% in December 2024. This indicates that the company has been able to generate more operating income from its assets over the years.
2. Return on assets (ROA) has also shown a positive trend, starting at 5.24% in December 2020 and peaking at 6.95% in December 2023. This ratio signifies the company's efficiency in generating profits from its total assets.
3. Return on total capital has exhibited a substantial growth trajectory, rising from 13.97% in December 2020 to 23.56% in December 2024. This indicates that Mondelez International Inc has been able to generate higher returns on the total capital employed in the business.
4. Return on equity (ROE) has also seen a steady improvement, increasing from 12.89% in December 2020 to 17.12% in December 2024. This ratio reflects how well the company has been able to generate profits for its shareholders relative to their equity investment.
Overall, the increasing trend in these profitability ratios demonstrates Mondelez International Inc's ability to effectively utilize its assets and capital to generate higher returns for both the company and its shareholders.