Stock Analysis on Net

Mondelēz International Inc. (NASDAQ:MDLZ)

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.


Economic Profit

Mondelēz International Inc., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net operating profit after taxes (NOPAT)1 5,433 3,016 4,733 3,858 3,572
Cost of capital2 8.62% 8.33% 8.29% 8.05% 8.27%
Invested capital3 61,495 63,833 61,560 61,366 58,928
 
Economic profit4 131 (2,303) (370) (1,083) (1,303)

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 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 5,4338.62% × 61,495 = 131

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Mondelēz International Inc. economic profit decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Net Operating Profit after Taxes (NOPAT)

Mondelēz International Inc., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: 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
Deferred income tax expense (benefit)1 (37) (42) 205 (70) (631)
Increase (decrease) in allowances for credit losses2 12 18 2 5 (8)
Increase (decrease) in restructuring Program liability3 27 (47) (93) 3 (72)
Increase (decrease) in equity equivalents4 2 (71) 114 (62) (711)
Interest expense, debt 550 428 365 423 484
Interest expense, operating lease liability5 36 29 21 21 20
Adjusted interest expense, debt 586 457 386 444 504
Tax benefit of interest expense, debt6 (123) (96) (81) (93) (106)
Adjusted interest expense, debt, after taxes7 463 361 305 351 398
Net income (loss) attributable to noncontrolling interest 9 9 14 14 15
Net operating profit after taxes (NOPAT) 5,433 3,016 4,733 3,858 3,572

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 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in allowances for credit losses.

3 Addition of increase (decrease) in restructuring Program liability.

4 Addition of increase (decrease) in equity equivalents to net earnings attributable to Mondelēz International.

5 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 702 × 5.10% = 36

6 2023 Calculation
Tax benefit of interest expense, debt = Adjusted interest expense, debt × Statutory income tax rate
= 586 × 21.00% = 123

7 Addition of after taxes interest expense to net earnings attributable to Mondelēz International.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Mondelēz International Inc. NOPAT decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Cash Operating Taxes

Mondelēz International Inc., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Provision for income taxes 1,537 865 1,190 1,224 2
Less: Deferred income tax expense (benefit) (37) (42) 205 (70) (631)
Add: Tax savings from interest expense, debt 123 96 81 93 106
Cash operating taxes 1,697 1,003 1,066 1,387 739

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).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Mondelēz International Inc. cash operating taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Invested Capital

Mondelēz International Inc., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Short-term borrowings 420 2,299 216 29 2,638
Current portion of long-term debt 2,101 383 1,746 2,741 1,581
Long-term debt, excluding current portion 16,887 20,251 17,550 17,276 14,207
Operating lease liability1 702 680 633 660 581
Total reported debt & leases 20,110 23,613 20,145 20,706 19,007
Total Mondelēz International shareholders’ equity 28,332 26,883 28,269 27,578 27,275
Net deferred tax (assets) liabilities2 2,884 2,964 2,903 2,556 2,612
Allowances for credit losses3 116 104 86 84 79
Restructuring Program liability4 191 164 211 304 301
Equity equivalents5 3,191 3,232 3,200 2,944 2,992
Accumulated other comprehensive (income) loss, net of tax6 10,946 10,947 10,624 10,690 10,258
Noncontrolling interest 34 37 54 76 76
Adjusted total Mondelēz International shareholders’ equity 42,503 41,099 42,147 41,288 40,601
Construction in progress7 (1,118) (879) (732) (628) (680)
Invested capital 61,495 63,833 61,560 61,366 58,928

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 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of restructuring Program liability.

5 Addition of equity equivalents to total Mondelēz International shareholders’ equity.

6 Removal of accumulated other comprehensive income.

7 Subtraction of construction in progress.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Mondelēz International Inc. invested capital increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Cost of Capital

Mondelēz International Inc., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 103,504 103,504 ÷ 121,712 = 0.85 0.85 × 9.82% = 8.35%
Debt3 17,506 17,506 ÷ 121,712 = 0.14 0.14 × 2.19% × (1 – 21.00%) = 0.25%
Operating lease liability4 702 702 ÷ 121,712 = 0.01 0.01 × 5.10% × (1 – 21.00%) = 0.02%
Total: 121,712 1.00 8.62%

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 89,856 89,856 ÷ 110,753 = 0.81 0.81 × 9.82% = 7.97%
Debt3 20,217 20,217 ÷ 110,753 = 0.18 0.18 × 2.40% × (1 – 21.00%) = 0.35%
Operating lease liability4 680 680 ÷ 110,753 = 0.01 0.01 × 4.20% × (1 – 21.00%) = 0.02%
Total: 110,753 1.00 8.33%

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 93,046 93,046 ÷ 113,928 = 0.82 0.82 × 9.82% = 8.02%
Debt3 20,249 20,249 ÷ 113,928 = 0.18 0.18 × 1.82% × (1 – 21.00%) = 0.26%
Operating lease liability4 633 633 ÷ 113,928 = 0.01 0.01 × 3.30% × (1 – 21.00%) = 0.01%
Total: 113,928 1.00 8.29%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 79,375 79,375 ÷ 101,603 = 0.78 0.78 × 9.82% = 7.67%
Debt3 21,568 21,568 ÷ 101,603 = 0.21 0.21 × 2.17% × (1 – 21.00%) = 0.36%
Operating lease liability4 660 660 ÷ 101,603 = 0.01 0.01 × 3.20% × (1 – 21.00%) = 0.02%
Total: 101,603 1.00 8.05%

Based on: 10-K (reporting date: 2020-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 84,056 84,056 ÷ 104,025 = 0.81 0.81 × 9.82% = 7.93%
Debt3 19,388 19,388 ÷ 104,025 = 0.19 0.19 × 2.20% × (1 – 21.00%) = 0.32%
Operating lease liability4 581 581 ÷ 104,025 = 0.01 0.01 × 3.50% × (1 – 21.00%) = 0.02%
Total: 104,025 1.00 8.27%

Based on: 10-K (reporting date: 2019-12-31).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Mondelēz International Inc., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit1 131 (2,303) (370) (1,083) (1,303)
Invested capital2 61,495 63,833 61,560 61,366 58,928
Performance Ratio
Economic spread ratio3 0.21% -3.61% -0.60% -1.76% -2.21%
Benchmarks
Economic Spread Ratio, Competitors4
Coca-Cola Co. 4.11% 3.80% 5.33% 3.12% 3.41%
PepsiCo Inc. 5.06% 5.06% 5.59% 4.21% 6.00%

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 Economic profit. See details »

2 Invested capital. See details »

3 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 131 ÷ 61,495 = 0.21%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Mondelēz International Inc. economic spread ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Economic Profit Margin

Mondelēz International Inc., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit1 131 (2,303) (370) (1,083) (1,303)
Net revenues 36,016 31,496 28,720 26,581 25,868
Performance Ratio
Economic profit margin2 0.36% -7.31% -1.29% -4.07% -5.04%
Benchmarks
Economic Profit Margin, Competitors3
Coca-Cola Co. 7.50% 7.06% 11.08% 7.14% 6.75%
PepsiCo Inc. 4.15% 4.07% 4.91% 4.19% 5.30%

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 Economic profit. See details »

2 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenues
= 100 × 131 ÷ 36,016 = 0.36%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Mondelēz International Inc. economic profit margin deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.