Mondelēz International Inc. (NASDAQ:MDLZ)

The aggregate value of goodwill and intangible assets exhibited an overall increasing trend between 2021 and 2025, though with some fluctuation. A closer examination of the components reveals differing patterns within goodwill and the various categories of intangible assets.

Goodwill

Goodwill increased from US$21,978 million in 2021 to US$24,336 million in 2025. While generally trending upward, a decrease was observed between 2022 and 2024, from US$23,450 million to US$23,017 million, before recovering in 2025. This suggests potential impairment considerations or adjustments during the 2023-2024 period.

Definite-Life Intangible Assets

The gross carrying amount of definite-life intangible assets showed a modest increase over the period, rising from US$2,991 million in 2021 to US$3,477 million in 2025. However, accumulated amortization increased at a faster rate, moving from negative US$1,999 million to negative US$2,496 million. Consequently, the net carrying amount of definite-life intangible assets initially increased from US$992 million in 2021 to US$1,297 million in 2022, but then declined to US$981 million in 2025. This indicates that the amortization expense is progressively reducing the value of these assets.

Indefinite-Life Intangible Assets

Indefinite-life intangible assets demonstrated a consistent upward trend, increasing from US$17,299 million in 2021 to US$18,647 million in 2025. A slight decrease occurred between 2023 and 2024, from US$18,669 million to US$17,770 million, but the value recovered in the final year. This suggests ongoing investment or valuation increases in these assets.

Total Intangible Assets, Net

Net intangible assets followed a similar pattern to indefinite-life assets, increasing from US$18,291 million in 2021 to US$19,628 million in 2025. The dip in 2024, to US$18,848 million, reflects the combined effect of changes in both definite and indefinite-life intangible assets.

The overall growth in goodwill and intangible assets suggests continued investment and acquisition activity. The contrasting trends within definite-life and indefinite-life intangible assets, along with the fluctuation in goodwill, warrant further investigation into the underlying drivers and potential impairment risks.

The information presents a comparison between reported and adjusted financial figures for total assets and total shareholders’ equity over a five-year period. A significant difference exists between the reported and adjusted values, primarily attributable to the removal of goodwill and intangible assets in the adjusted figures. This analysis focuses on the trends observed in these adjusted values and their implications.

Total Assets Trend

Adjusted total assets demonstrate an initial increase from 45,114 million in 2021 to 47,711 million in 2022. This is followed by a slight decrease to 47,495 million in 2023, a more substantial decline to 45,480 million in 2024, and a subsequent recovery to 47,151 million in 2025. The overall trend suggests relative stability with fluctuations, but remains below the 2022 peak. The largest single-year decrease occurs between 2023 and 2024.

Shareholders’ Equity Trend

Adjusted total shareholders’ equity exhibits a consistent downward trend throughout the period. It declines from 6,291 million in 2021 to 3,433 million in 2022, 4,436 million in 2023, 3,915 million in 2024, and further to 1,502 million in 2025. This represents a substantial reduction in equity over the five years, indicating a significant impact from the adjustments made to remove goodwill and related intangible assets. The rate of decline appears to accelerate in the later years of the period.

Relationship between Assets and Equity

The ratio of adjusted shareholders’ equity to adjusted total assets decreases consistently. In 2021, this ratio was approximately 13.9%, declining to 7.2% in 2022, 9.3% in 2023, 8.6% in 2024, and finally to 3.2% in 2025. This indicates a decreasing proportion of assets financed by equity, and a growing reliance on other sources of financing, or a reduction in the net asset value attributable to shareholders after the adjustments.

Magnitude of Adjustments

The difference between reported and adjusted total assets is substantial throughout the period, ranging from approximately 21,978 million in 2021 to 23,664 million in 2025. Similarly, the difference between reported and adjusted shareholders’ equity is significant, starting at 21,978 million in 2021 and reaching 24,336 million in 2025. These large discrepancies highlight the considerable impact of goodwill and intangible assets on the reported financial position.

In summary, the adjusted financial figures reveal a trend of decreasing shareholders’ equity and fluctuating, but generally stable, total assets. The substantial adjustments made to remove goodwill and intangible assets significantly alter the financial picture presented, suggesting a potentially different assessment of the company’s financial health when these items are excluded.

The financial metrics demonstrate a significant impact from adjusting for goodwill and intangible assets. Reported ratios generally exhibit more moderate changes compared to their adjusted counterparts, highlighting the substantial influence of these non-operating assets on the company’s financial profile. A consistent upward trend is observed in both reported and adjusted total asset turnover from 2021 to 2025, though the adjusted ratio consistently exceeds the reported ratio by a considerable margin.

Total Asset Turnover

Reported total asset turnover increased steadily from 0.43 in 2021 to 0.54 in 2025, indicating improving efficiency in asset utilization. The adjusted total asset turnover shows a more pronounced increase, moving from 0.64 in 2021 to 0.82 in 2025. This suggests that excluding goodwill and intangibles reveals a higher level of operational efficiency than initially apparent.

Financial Leverage

Reported financial leverage fluctuated over the period, increasing from 2.37 in 2021 to 2.65 in 2022, decreasing to 2.52 and 2.54 in 2023 and 2024, and then increasing again to 2.77 in 2025. In contrast, adjusted financial leverage experienced a dramatic increase from 7.17 in 2021 to 13.90 in 2022, followed by a decrease to 10.71 in 2023 and 11.62 in 2024, before surging to 31.39 in 2025. This substantial difference indicates that the inclusion of goodwill and intangibles significantly understates the company’s true leverage position.

Return on Equity (ROE)

Reported ROE exhibited volatility, declining from 15.21% in 2021 to 10.11% in 2022, increasing to 17.50% and 17.12% in 2023 and 2024, and then decreasing sharply to 9.49% in 2025. Adjusted ROE, however, demonstrated a consistent and substantial increase throughout the period, rising from 68.35% in 2021 to 163.18% in 2025. This highlights the considerable impact of goodwill and intangibles on the reported ROE, and suggests a much stronger underlying profitability when these items are excluded.

Return on Assets (ROA)

Reported ROA followed a similar pattern to ROE, decreasing from 6.41% in 2021 to 3.82% in 2022, increasing to 6.95% and 6.73% in 2023 and 2024, and then declining to 3.43% in 2025. Adjusted ROA also increased from 9.53% in 2021 to 10.44% in 2023, before decreasing to 5.20% in 2025. While both metrics show fluctuations, the adjusted ROA consistently exceeds the reported ROA, indicating that the company generates a higher return on its operating assets when goodwill and intangibles are excluded.

The increasing divergence between reported and adjusted ratios over time suggests that the proportion of goodwill and intangible assets relative to total assets is changing, or that their impact on the calculation of these ratios is becoming more pronounced. The substantial increases in adjusted financial leverage and ROE, in particular, warrant further investigation to understand the underlying drivers and potential implications for the company’s financial risk and performance.

An examination of the financial information reveals trends in both total asset figures and associated turnover ratios over a five-year period. Reported total assets experienced initial growth, peaking in 2022, followed by a decrease in 2023 and a subsequent recovery in 2025. Adjusted total assets mirrored this pattern, though the fluctuations were less pronounced. The adjusted total asset turnover ratio consistently exceeded the reported total asset turnover ratio throughout the period, indicating the impact of adjustments made to the asset base.

Reported Total Assets

Reported total assets increased from US$67,092 million in 2021 to US$71,161 million in 2022, representing a growth of approximately 6.1%. A decline was then observed in 2023, falling to US$71,391 million, before decreasing further to US$68,497 million in 2024. By 2025, reported total assets recovered to US$71,487 million, surpassing the 2022 peak.

Adjusted Total Assets

Adjusted total assets demonstrated a similar trajectory to reported total assets, increasing from US$45,114 million in 2021 to US$47,711 million in 2022, a rise of approximately 5.8%. A slight decrease occurred in 2023 to US$47,495 million, followed by a more substantial reduction to US$45,480 million in 2024. Adjusted total assets then increased to US$47,151 million in 2025.

Reported Total Asset Turnover

The reported total asset turnover ratio exhibited a consistent upward trend. Starting at 0.43 in 2021, it increased to 0.44 in 2022, then to 0.50 in 2023. This upward momentum continued with a rise to 0.53 in 2024 and further to 0.54 in 2025. This indicates increasing efficiency in generating revenue from reported assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also showed a consistent upward trend, and at a higher level than the reported ratio. Beginning at 0.64 in 2021, it rose to 0.66 in 2022, then to 0.76 in 2023. Further increases were observed in 2024 (0.80) and 2025 (0.82). The consistent growth suggests improved efficiency in utilizing adjusted assets to generate revenue. The difference between the reported and adjusted ratios suggests that the adjustments to total assets significantly impact the assessment of asset efficiency.

The increasing trend in both reported and adjusted total asset turnover ratios suggests improving operational efficiency over the observed period. The consistently higher adjusted total asset turnover ratio highlights the importance of considering the adjustments made to the asset base when evaluating the company’s ability to generate revenue from its assets.

An examination of the financial information reveals significant trends in both reported and adjusted financial leverage over the five-year period. Reported total assets demonstrate a generally stable pattern, with fluctuations between approximately US$68 billion and US$71 billion. Reported shareholders’ equity exhibits a similar pattern of relative stability, ranging from US$25.8 billion to US$28.3 billion. However, adjusted total assets and adjusted shareholders’ equity show considerably more volatility and a general decline in adjusted equity towards the end of the period.

Reported Financial Leverage

Reported financial leverage, calculated as total assets divided by total shareholders’ equity, remains relatively consistent, increasing from 2.37 in 2021 to 2.77 in 2025. The increases are gradual, suggesting a stable capital structure from a traditional accounting perspective. The ratio fluctuates within a narrow band, indicating a predictable relationship between assets and equity as reported.

Adjusted Financial Leverage

Adjusted financial leverage, which utilizes adjusted total assets and adjusted shareholders’ equity, presents a markedly different picture. The ratio increases substantially from 7.17 in 2021 to 31.39 in 2025. This dramatic increase suggests a significant rise in financial risk when considering the adjustments made to assets and equity. The ratio peaked in 2025, indicating a substantial change in the company’s financial structure when assessed using the adjusted figures. The large difference between reported and adjusted leverage highlights the impact of the adjustments made to the balance sheet items.

The divergence between reported and adjusted financial leverage is particularly noteworthy. While reported leverage suggests a stable financial position, the adjusted leverage indicates a growing reliance on debt or other non-equity financing when considering the adjustments. The decline in adjusted shareholders’ equity, coupled with relatively stable adjusted total assets, is the primary driver of this increasing adjusted leverage. This trend warrants further investigation to understand the nature of the adjustments and their implications for the company’s long-term financial health.

Trends in Adjusted Balance Sheet Items

Adjusted total assets remained relatively stable between US$45 billion and US$48 billion throughout the period, with a slight dip in 2024. However, adjusted total shareholders’ equity experienced a significant decline, falling from US$6.3 billion in 2021 to US$1.5 billion in 2025. This substantial decrease in adjusted equity is the key factor contributing to the escalating adjusted financial leverage ratio.

In conclusion, the analysis reveals a discrepancy between the company’s reported and adjusted financial leverage. While reported leverage remains stable, adjusted leverage demonstrates a significant and increasing trend, driven by a substantial decline in adjusted shareholders’ equity. This divergence suggests that the company’s financial risk profile, when assessed using adjusted figures, is considerably different from what is indicated by the standard financial statements.

Analysis reveals a significant divergence between reported and adjusted return on equity (ROE) figures over the five-year period. While reported ROE fluctuates, the adjusted ROE demonstrates a consistently increasing trend, albeit from a substantially lower equity base.

Shareholders’ Equity

Reported total shareholders’ equity experienced a decrease from 2021 to 2022, followed by a recovery in 2023, and then another decline through 2025. The trend suggests volatility in reported equity values. In contrast, adjusted total shareholders’ equity shows a marked decrease over the period, falling considerably from 2021 to 2025. This indicates a substantial difference in how equity is valued when adjustments are applied.

Reported ROE

Reported ROE decreased from 15.21% in 2021 to 10.11% in 2022, then increased to 17.50% in 2023 and remained relatively stable at 17.12% in 2024 before declining to 9.49% in 2025. This fluctuation likely correlates with changes in reported shareholders’ equity and net income.

Adjusted ROE

Adjusted ROE exhibits a strong upward trend, increasing from 68.35% in 2021 to 79.14% in 2022, 111.79% in 2023, 117.78% in 2024, and reaching 163.18% in 2025. This substantial increase, despite the declining adjusted equity base, suggests that the adjustments made to equity significantly impact profitability metrics. The magnitude of the adjusted ROE values warrants further investigation into the nature of these adjustments and their underlying drivers.

The considerable difference between reported and adjusted ROE highlights the importance of understanding the components of shareholders’ equity and the impact of adjustments related to goodwill and intangible assets. The increasing adjusted ROE, coupled with the decreasing adjusted equity, suggests a growing reliance on intangible value relative to the reported equity base.

The analysis reveals distinct trends in both reported and adjusted return on assets (ROA) over the five-year period. A notable divergence exists between the two ROA calculations, stemming from differences in total asset valuation. Reported total assets fluctuate, while adjusted total assets demonstrate a more moderate pattern of growth followed by a decline and subsequent recovery.

Reported Return on Assets (ROA)

Reported ROA experiences considerable volatility. It begins at 6.41% in 2021, declines to 3.82% in 2022, then recovers to 6.95% in 2023 and remains relatively stable at 6.73% in 2024. A significant decrease is observed in 2025, falling to 3.43%. This suggests the company’s profitability relative to its reported total assets is subject to considerable year-over-year variation.

Adjusted Return on Assets (ROA)

Adjusted ROA consistently exceeds reported ROA throughout the period. It starts at 9.53% in 2021, decreases to 5.69% in 2022, and then rises to a peak of 10.44% in 2023. A slight decline to 10.14% occurs in 2024, followed by a substantial decrease to 5.20% in 2025. The adjusted ROA trend mirrors the reported ROA trend, but at a higher level, indicating that excluding certain asset components results in a more favorable profitability picture.

Total Asset Trends

Reported total assets increase from US$67,092 million in 2021 to US$71,161 million in 2022, then experience a slight increase to US$71,391 million in 2023. A decrease is noted in 2024, falling to US$68,497 million, before recovering to US$71,487 million in 2025. Adjusted total assets show a similar initial increase, peaking at US$47,711 million in 2022, followed by a decrease to US$45,480 million in 2024, and a subsequent recovery to US$47,151 million in 2025. The difference between reported and adjusted total assets widens and narrows over the period, suggesting changes in the valuation of specific asset categories.

The decline in both reported and adjusted ROA in 2025 warrants further investigation. The consistency of the adjusted ROA being higher than the reported ROA suggests that the adjustments made to total assets have a material impact on the assessment of the company’s profitability. The fluctuations in reported total assets, coupled with the consistent difference between reported and adjusted figures, indicate the importance of understanding the composition and valuation of the company’s asset base.