Mondelez International Inc (MDLZ)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 6,684,000 6,452,000 6,724,000 5,502,000 5,143,000 4,443,000 3,945,000 3,534,000 3,904,000 4,519,000 4,464,000 4,653,000 4,598,000 4,439,000 4,280,000 3,853,000 3,610,000 3,351,000 3,663,000 3,843,000
Total assets US$ in thousands 68,497,000 72,191,000 77,624,000 71,391,000 70,860,000 72,025,000 72,786,000 71,161,000 68,036,000 66,014,000 67,994,000 67,092,000 67,317,000 66,477,000 66,349,000 67,810,000 66,249,000 64,194,000 63,598,000 64,515,000
Operating ROA 9.76% 8.94% 8.66% 7.71% 7.26% 6.17% 5.42% 4.97% 5.74% 6.85% 6.57% 6.94% 6.83% 6.68% 6.45% 5.68% 5.45% 5.22% 5.76% 5.96%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $6,684,000K ÷ $68,497,000K
= 9.76%

Operating return on assets (Operating ROA) is a key financial ratio used to evaluate a company's profitability and efficiency in generating earnings from its operating activities relative to the total assets employed in the business.

Analyzing the data provided for Mondelez International Inc's Operating ROA, we observe fluctuations in the ratio over the reported quarters. At the start of the period, as of December 31, 2019, the Operating ROA stood at 5.96%, showing a moderate return on assets. Subsequently, the ratio experienced some variations, with a dip to 5.22% by June 30, 2020, before rebounding to 6.94% by December 31, 2021. This increase in profitability could indicate improved operational efficiency or revenue growth.

The trend continued to improve as of March 31, 2024, with an Operating ROA of 8.66%. This surge in profitability suggests that Mondelez International Inc effectively utilized its assets to enhance operational performance and generate higher returns for shareholders. The ratio peaked at 9.76% by December 31, 2024, indicating a significant improvement in the company's ability to generate earnings relative to its asset base.

On the whole, the increasing trend in Mondelez International Inc's Operating ROA reflects a positive performance in utilizing its assets efficiently to drive profitability. Investors and stakeholders may view this as a favorable indicator of the company's operational effectiveness and financial strength.