Stock Analysis on Net

Mondelēz International Inc. (NASDAQ:MDLZ)

Analysis of Operating Leases

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Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Mondelēz International Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total undiscounted future operating lease payments 780  920  921 
Discount rate1 2.30% 2.10% 2.20%
 
Total present value of future operating lease payments 725  863  860 

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).

1 Weighted-average interest rate for Mondelēz International Inc. debt

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.30%
2019 208  2019 208  203 
2020 165  2020 165  158 
2021 114  2021 114  106 
2022 79  2022 79  72 
2023 57  2023 57  51 
2024 and thereafter 157  2024 57  50 
2025 57  49 
2026 43  36 
Total: 780  780  725 

Based on: 10-K (reporting date: 2018-12-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.10%
2018 245  2018 245  240 
2019 202  2019 202  194 
2020 150  2020 150  141 
2021 102  2021 102  94 
2022 67  2022 67  60 
2023 and thereafter 154  2023 67  59 
2024 67  58 
2025 20  17 
Total: 920  920  863 

Based on: 10-K (reporting date: 2017-12-31).

Year Future operating lease payments (as reported) Year Future operating lease payments (estimated) Present value at 2.20%
2017 241  2017 241  236 
2018 175  2018 175  168 
2019 143  2019 143  134 
2020 115  2020 115  105 
2021 90  2021 90  81 
2022 and thereafter 157  2022 90  79 
2023 67  58 
Total: 921  921  860 

Based on: 10-K (reporting date: 2016-12-31).


Adjustments to Financial Statements for Operating Leases

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 
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 —  —  725  863  860 
Total assets (adjusted) 67,810  64,549  63,454  63,972  62,398 
Adjustment to Total Debt
Total debt (as reported) 20,046  18,426  18,372  17,652  17,199 
Add: Operating lease liability (before adoption of FASB Topic 842)2 —  —  725  863  860 
Add: Current operating lease liabilities (included in Other current liabilities) 190  178  —  —  — 
Add: Long-term operating lease liabilities 470  403  —  —  — 
Total debt (adjusted) 20,706  19,007  19,097  18,515  18,059 

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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (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 Turnover1
Reported total asset turnover 0.39 0.40 0.41 0.41 0.42
Adjusted total asset turnover 0.39 0.40 0.41 0.40 0.42
Debt to Equity2
Reported debt to equity 0.73 0.68 0.72 0.68 0.68
Adjusted debt to equity 0.75 0.70 0.74 0.71 0.72
Return on Assets3 (ROA)
Reported ROA 5.24% 6.00% 5.39% 4.63% 2.70%
Adjusted ROA 5.24% 6.00% 5.33% 4.57% 2.66%

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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Mondelēz International Inc. adjusted debt to equity ratio improved from 2018 to 2019 but then deteriorated significantly 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 Operating Leases
Selected Financial Data (US$ in millions)
Net revenues 26,581  25,868  25,938  25,896  25,923 
Adjusted total assets 67,810  64,549  63,454  63,972  62,398 
Activity Ratio
Adjusted total asset turnover2 0.39 0.40 0.41 0.40 0.42

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 ÷ 67,810 = 0.39

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 Debt to Equity

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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 debt 20,046  18,426  18,372  17,652  17,199 
Total Mondelēz International shareholders’ equity 27,578  27,275  25,637  26,111  25,161 
Solvency Ratio
Debt to equity1 0.73 0.68 0.72 0.68 0.68
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 20,706  19,007  19,097  18,515  18,059 
Total Mondelēz International shareholders’ equity 27,578  27,275  25,637  26,111  25,161 
Solvency Ratio
Adjusted debt to equity2 0.75 0.70 0.74 0.71 0.72

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 Debt to equity = Total debt ÷ Total Mondelēz International shareholders’ equity
= 20,046 ÷ 27,578 = 0.73

2 Adjusted debt to equity = Adjusted total debt ÷ Total Mondelēz International shareholders’ equity
= 20,706 ÷ 27,578 = 0.75

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Mondelēz International Inc. adjusted debt-to-equity ratio improved from 2018 to 2019 but then deteriorated significantly 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 Operating Leases
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 67,810  64,549  63,454  63,972  62,398 
Profitability Ratio
Adjusted ROA2 5.24% 6.00% 5.33% 4.57% 2.66%

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 ÷ 67,810 = 5.24%

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.