Mondelez International Inc (MDLZ)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 508,000 | 565,000 | 436,000 | 372,000 | 430,000 |
| Interest coverage | 12.49 | 9.74 | 8.11 | 12.51 | 8.96 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,345,000K ÷ $508,000K
= 12.49
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. For Mondelez International Inc, the interest coverage ratios over the past five years have been consistently healthy, indicating the company's strong ability to cover its interest expenses.
As of December 31, 2020, the interest coverage ratio was at 8.96, showing that the company generated almost 9 times the amount needed to cover its interest obligations. This ratio improved in the following years, reaching 12.51 by December 31, 2021, and maintaining a strong position.
However, there was a slight dip in the interest coverage ratio to 8.11 on December 31, 2022, suggesting a temporary decrease in the company's ability to cover its interest expenses adequately. Mondelez International Inc managed to improve this ratio in the subsequent years, with ratios of 9.74 on December 31, 2023, and 12.49 by December 31, 2024.
Overall, the trend in Mondelez International Inc's interest coverage ratios indicates a generally robust financial position, with the ability to comfortably meet its interest obligations, barring the temporary decline in 2022.
Peer comparison
Dec 31, 2024