Mondelez International Inc (MDLZ)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.52 | 2.65 | 2.37 | 2.46 | 2.37 |
Mondelez International Inc.'s solvency ratios demonstrate the company's ability to meet its long-term financial obligations and provide insights into its capital structure.
The debt-to-assets ratio has shown a decreasing trend over the five-year period, indicating that a lower proportion of the company's assets are financed by debt. This trend suggests a stronger financial position and lower financial risk.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend, reflecting a lower reliance on debt to fund the company's operations and investments. A declining debt-to-capital ratio indicates that Mondelez is relying less on debt financing compared to its total capital structure, while a decreasing debt-to-equity ratio signifies that the company has been reducing its debt levels relative to its equity.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its assets, has also decreased over the period. A lower financial leverage ratio indicates a lower level of debt in the company's capital structure, which can reduce financial risk and improve financial stability.
Overall, the declining trend in Mondelez's solvency ratios suggests that the company has been effectively managing its debt levels and improving its financial strength and stability over the years. These ratios indicate a healthier balance between debt and equity in the company's capital structure, which can enhance its ability to weather economic downturns and pursue growth opportunities.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.74 | 8.11 | 12.51 | 8.96 | 7.88 |
Mondelez International Inc.'s interest coverage ratio has displayed fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest payment obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses with operating income.
In 2023, the interest coverage ratio was 10.49, marking an improvement from the previous year's ratio of 9.77 in 2022. This suggests that Mondelez International Inc. generated sufficient operating income to cover its interest expenses comfortably.
In 2021, the interest coverage ratio was relatively high at 14.38, indicating a strong ability to cover interest payments with operating income. This was a positive sign for the company's financial health.
In 2020 and 2019, the interest coverage ratios were 10.82 and 9.23, respectively, showing moderate levels of coverage for interest expenses during those years.
Overall, Mondelez International Inc.'s interest coverage has generally been at satisfactory levels in recent years, indicating the company's ability to handle its interest obligations. However, it is essential to monitor this ratio over time to ensure ongoing financial stability and solvency.