Stock Analysis on Net

Mondelēz International Inc. (NASDAQ:MDLZ)

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Mondelēz International Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating Assets
Total assets 71,391 71,161 67,092 67,810 64,549
Less: Cash and cash equivalents 1,810 1,923 3,546 3,619 1,291
Operating assets 69,581 69,238 63,546 64,191 63,258
Operating Liabilities
Total liabilities 43,025 44,241 38,769 40,156 37,198
Less: Short-term borrowings 420 2,299 216 29 2,638
Less: Current portion of long-term debt 2,101 383 1,746 2,741 1,581
Less: Long-term debt, excluding current portion 16,887 20,251 17,550 17,276 14,207
Operating liabilities 23,617 21,308 19,257 20,110 18,772
 
Net operating assets1 45,964 47,930 44,289 44,081 44,486
Balance-sheet-based aggregate accruals2 (1,966) 3,641 208 (405)
Financial Ratio
Balance-sheet-based accruals ratio3 -4.19% 7.90% 0.47% -0.91%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Coca-Cola Co. 4.65% -3.05% 3.39% 0.90%
PepsiCo Inc. 3.36% 0.98% 4.76% 15.56%
Balance-Sheet-Based Accruals Ratio, Sector
Food, Beverage & Tobacco 1.51% 1.65% 2.97% 4.95%
Balance-Sheet-Based Accruals Ratio, Industry
Consumer Staples 2.35% 3.17% -0.53% 0.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 69,58123,617 = 45,964

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 45,96447,930 = -1,966

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -1,966 ÷ [(45,964 + 47,930) ÷ 2] = -4.19%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Mondelēz International Inc. improved earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Mondelēz International Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net earnings attributable to Mondelēz International 4,959 2,717 4,300 3,555 3,870
Less: Net cash provided by operating activities 4,714 3,908 4,141 3,964 3,965
Less: Net cash (used in) provided by investing activities 2,812 (4,888) (26) 500 (960)
Cash-flow-statement-based aggregate accruals (2,567) 3,697 185 (909) 865
Financial Ratio
Cash-flow-statement-based accruals ratio1 -5.47% 8.02% 0.42% -2.05%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Coca-Cola Co. 4.51% -1.32% -0.16% -1.17%
PepsiCo Inc. 2.17% 1.04% -1.48% 18.19%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Food, Beverage & Tobacco 0.67% 2.33% -0.43% 4.65%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Consumer Staples 1.90% 1.41% -4.95% -1.05%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -2,567 ÷ [(45,964 + 47,930) ÷ 2] = -5.47%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Mondelēz International Inc. improved earnings quality from 2022 to 2023.