Mondelez International Inc (MDLZ)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,345,000 | 5,502,000 | 3,534,000 | 4,653,000 | 3,853,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 26,932,000 | 28,332,000 | 26,883,000 | 28,269,000 | 27,578,000 |
| Return on total capital | 23.56% | 19.42% | 13.15% | 16.46% | 13.97% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,345,000K ÷ ($—K + $26,932,000K)
= 23.56%
To analyze Mondelez International Inc's return on total capital over the past five years:
1. Mondelez International Inc's return on total capital has been improving steadily from 13.97% as of December 31, 2020, to 23.56% as of December 31, 2024.
2. The company's return on total capital experienced a notable increase from 2023 to 2024, jumping from 19.42% to 23.56%. This significant rise may indicate improved efficiency in managing the company’s capital to generate higher returns.
3. The consistent growth in return on total capital suggests that Mondelez International Inc has been effectively utilizing its capital resources to generate profits and create value for its shareholders.
4. A return on total capital of 23.56% as of December 31, 2024, indicates that for every dollar of capital employed in the business, Mondelez International Inc generated a return of approximately 23.56 cents, reflecting a strong performance in capital utilization efficiency.
Overall, the increasing trend in Mondelez International Inc's return on total capital over the analyzed period signals positive financial management and operational efficiency, which may contribute to the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2024