Mondelez International Inc (MDLZ)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,502,000 | 3,534,000 | 4,653,000 | 3,853,000 | 3,843,000 |
| Interest expense | US$ in thousands | 565,000 | 436,000 | 372,000 | 430,000 | 488,000 |
| Interest coverage | 9.74 | 8.11 | 12.51 | 8.96 | 7.88 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,502,000K ÷ $565,000K
= 9.74
Interest coverage ratio measures a company's ability to pay its interest expenses on its outstanding debt. A higher interest coverage ratio indicates that a company is more capable of meeting its interest obligations.
For Mondelez International Inc., the interest coverage ratio has been relatively stable over the past five years, ranging from 9.23 to 14.38. The trend indicates that the company has consistently maintained a strong ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio is 10.49, showing a slight improvement compared to the previous year. This suggests that Mondelez International Inc. has a comfortable margin of safety in meeting its interest payments, which is a positive sign for creditors and investors.
Overall, Mondelez International Inc. has demonstrated a solid ability to generate enough income to comfortably cover its interest obligations, which enhances its financial stability and creditworthiness.
Peer comparison
Dec 31, 2023