Stock Analysis on Net

Mondelēz International Inc. (NASDAQ:MDLZ)

Analysis of Goodwill and Intangible Assets

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Goodwill and Intangible Asset Disclosure

Mondelēz International Inc., balance sheet: goodwill and intangible assets

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Goodwill 21,895  20,848  20,725  21,085  20,276 
Indefinite-life intangible assets 17,492  17,296  17,201  17,671  17,004 
Definite-life intangible assets, gross 2,907  2,374  2,328  2,386  2,315 
Accumulated amortization (1,917) (1,713) (1,527) (1,418) (1,218)
Definite-life intangible assets, net 990  661  801  968  1,097 
Intangible assets, net 18,482  17,957  18,002  18,639  18,101 
Goodwill and intangible assets 40,377  38,805  38,727  39,724  38,377 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Mondelēz International Inc. goodwill increased from 2018 to 2019 and from 2019 to 2020.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Mondelēz International Inc. intangible assets, net decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Mondelēz International Inc. goodwill and intangible assets increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Goodwill

Mondelēz International Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 67,810  64,549  62,729  63,109  61,538 
Less: Goodwill 21,895  20,848  20,725  21,085  20,276 
Total assets (adjusted) 45,915  43,701  42,004  42,024  41,262 
Adjustment to Total Mondelēz International Shareholders’ Equity
Total Mondelēz International shareholders’ equity (as reported) 27,578  27,275  25,637  26,111  25,161 
Less: Goodwill 21,895  20,848  20,725  21,085  20,276 
Total Mondelēz International shareholders’ equity (adjusted) 5,683  6,427  4,912  5,026  4,885 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).


Mondelēz International Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Mondelēz International Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total Asset Turnover
Reported total asset turnover 0.39 0.40 0.41 0.41 0.42
Adjusted total asset turnover 0.58 0.59 0.62 0.62 0.63
Financial Leverage
Reported financial leverage 2.46 2.37 2.45 2.42 2.45
Adjusted financial leverage 8.08 6.80 8.55 8.36 8.45
Return on Equity (ROE)
Reported ROE 12.89% 14.19% 13.19% 11.19% 6.59%
Adjusted ROE 62.55% 60.21% 68.83% 58.14% 33.96%
Return on Assets (ROA)
Reported ROA 5.24% 6.00% 5.39% 4.63% 2.70%
Adjusted ROA 7.74% 8.86% 8.05% 6.95% 4.02%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Mondelēz International Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Mondelēz International Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Mondelēz International Inc. adjusted ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Mondelēz International Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Mondelēz International Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net revenues 26,581  25,868  25,938  25,896  25,923 
Total assets 67,810  64,549  62,729  63,109  61,538 
Activity Ratio
Total asset turnover1 0.39 0.40 0.41 0.41 0.42
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues 26,581  25,868  25,938  25,896  25,923 
Adjusted total assets 45,915  43,701  42,004  42,024  41,262 
Activity Ratio
Adjusted total asset turnover2 0.58 0.59 0.62 0.62 0.63

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 26,581 ÷ 67,810 = 0.39

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 26,581 ÷ 45,915 = 0.58

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Mondelēz International Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 67,810  64,549  62,729  63,109  61,538 
Total Mondelēz International shareholders’ equity 27,578  27,275  25,637  26,111  25,161 
Solvency Ratio
Financial leverage1 2.46 2.37 2.45 2.42 2.45
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 45,915  43,701  42,004  42,024  41,262 
Adjusted total Mondelēz International shareholders’ equity 5,683  6,427  4,912  5,026  4,885 
Solvency Ratio
Adjusted financial leverage2 8.08 6.80 8.55 8.36 8.45

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Financial leverage = Total assets ÷ Total Mondelēz International shareholders’ equity
= 67,810 ÷ 27,578 = 2.46

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Mondelēz International shareholders’ equity
= 45,915 ÷ 5,683 = 8.08

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Mondelēz International Inc. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Equity (ROE)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Mondelēz International 3,555  3,870  3,381  2,922  1,659 
Total Mondelēz International shareholders’ equity 27,578  27,275  25,637  26,111  25,161 
Profitability Ratio
ROE1 12.89% 14.19% 13.19% 11.19% 6.59%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Mondelēz International 3,555  3,870  3,381  2,922  1,659 
Adjusted total Mondelēz International shareholders’ equity 5,683  6,427  4,912  5,026  4,885 
Profitability Ratio
Adjusted ROE2 62.55% 60.21% 68.83% 58.14% 33.96%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROE = 100 × Net earnings attributable to Mondelēz International ÷ Total Mondelēz International shareholders’ equity
= 100 × 3,555 ÷ 27,578 = 12.89%

2 Adjusted ROE = 100 × Net earnings attributable to Mondelēz International ÷ Adjusted total Mondelēz International shareholders’ equity
= 100 × 3,555 ÷ 5,683 = 62.55%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Mondelēz International Inc. adjusted ROE deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Return on Assets (ROA)

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Mondelēz International 3,555  3,870  3,381  2,922  1,659 
Total assets 67,810  64,549  62,729  63,109  61,538 
Profitability Ratio
ROA1 5.24% 6.00% 5.39% 4.63% 2.70%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to Mondelēz International 3,555  3,870  3,381  2,922  1,659 
Adjusted total assets 45,915  43,701  42,004  42,024  41,262 
Profitability Ratio
Adjusted ROA2 7.74% 8.86% 8.05% 6.95% 4.02%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROA = 100 × Net earnings attributable to Mondelēz International ÷ Total assets
= 100 × 3,555 ÷ 67,810 = 5.24%

2 Adjusted ROA = 100 × Net earnings attributable to Mondelēz International ÷ Adjusted total assets
= 100 × 3,555 ÷ 45,915 = 7.74%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Mondelēz International Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.