Mondelez International Inc (MDLZ)

Interest coverage

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	3,807,000	3,668,000	3,124,000
Interest expense (ttm)	US$ in thousands	565,000	574,000	554,000	498,000	436,000	391,000	364,000	365,000	372,000	383,000	400,000	418,000	430,000	437,000	455,000	474,000	487,000	500,000	495,000	483,000
Interest coverage		9.74	8.96	8.02	7.92	8.11	9.98	12.41	12.23	12.51	12.01	11.10	10.24	8.96	8.26	7.36	7.73	7.89	7.61	7.41	6.47

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,502,000K ÷ $565,000K
= 9.74

Interest coverage is a financial ratio that indicates a company's ability to cover its interest expenses with its operating income. In the case of Mondelez International Inc., the interest coverage ratio has shown some fluctuations over the past eight quarters, ranging from a low of 8.94 in Q2 2023 to a high of 14.48 in Q1 2022.

Overall, Mondelez's interest coverage has been relatively healthy, consistently above the benchmark of 1, indicating that the company has ample operating income to cover its interest obligations. The slight fluctuations in the ratio may reflect changes in the company's operating performance or interest expenses over the quarters under review.

The upward trend in interest coverage from Q2 2022 to Q1 2022 is a positive sign, suggesting that Mondelez's profitability has improved, enabling them to cover their interest payments more effectively. However, the decrease in Q2 2023 followed by a slight increase in Q3 2023 warrants further monitoring to understand if this is a temporary fluctuation or a trend that may impact the company's financial health in the future.

In conclusion, although Mondelez's interest coverage ratio has shown some variability over the quarters, it generally indicates a strong ability to meet its interest obligations, providing a favorable view of the company's financial health.