Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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Mondelēz International Inc. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
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Return on Invested Capital (ROIC)
Mondelēz International Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The period under review demonstrates considerable fluctuation in Return on Invested Capital (ROIC). Net operating profit after taxes (NOPAT) and invested capital both exhibit variability, contributing to the observed ROIC trends.
- ROIC Performance
- ROIC began at 7.69% in 2021, decreased significantly to 4.72% in 2022, then rose substantially to 8.83% in 2023. This upward momentum continued into 2024, with ROIC reaching 8.75%. However, a marked decline is evident in 2025, with ROIC falling back to 4.75%.
- NOPAT Analysis
- NOPAT experienced a substantial decrease from US$4,733 million in 2021 to US$3,016 million in 2022. A strong recovery occurred in 2023, with NOPAT increasing to US$5,433 million. While remaining high in 2024 at US$5,271 million, NOPAT decreased considerably in 2025 to US$2,920 million, mirroring the ROIC decline.
- Invested Capital Trends
- Invested capital showed a moderate increase from US$61,560 million in 2021 to US$63,833 million in 2022. It then decreased to US$61,495 million in 2023 and further to US$60,269 million in 2024. A slight increase to US$61,526 million is observed in 2025, but this does not offset the decline in NOPAT.
The fluctuations in ROIC appear strongly correlated with changes in NOPAT. While invested capital remains relatively stable, the significant swings in profitability directly impact the return generated on that capital. The decline in both NOPAT and ROIC in 2025 warrants further investigation to determine the underlying causes and potential implications.
Decomposition of ROIC
Mondelēz International Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | = | × | × | ||||
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The period under review demonstrates fluctuating performance in key profitability and efficiency metrics. Return on Invested Capital (ROIC) exhibits volatility, influenced by changes in operating profitability, capital efficiency, and tax effects. A detailed examination of the components reveals specific trends.
- Operating Profit Margin (OPM)
- The Operating Profit Margin experienced a significant decline from 2021 to 2022, falling from 20.19% to 12.76%. A recovery was then observed in 2023, with the margin increasing to 19.80%, followed by a slight decrease to 18.11% in 2024. However, a substantial drop is evident in 2025, with the OPM falling to 9.91%. This suggests increasing cost pressures or declining pricing power in the most recent year.
- Turnover of Capital (TO)
- Turnover of Capital, a measure of capital efficiency, shows a consistent upward trend throughout the period. Starting at 0.47 in 2021, it increased to 0.49 in 2022, 0.59 in 2023, 0.60 in 2024, and reached 0.63 in 2025. This indicates improving efficiency in utilizing capital to generate revenue.
- Effective Cash Tax Rate Adjustment (1 – CTR)
- The metric representing one minus the Effective Cash Tax Rate generally remained high, fluctuating between 75.04% and 81.62% during the period. A peak was observed in 2021 at 81.62%, followed by a decline and subsequent increase to 79.88% in 2024. The value decreased to 76.43% in 2025. These values suggest a relatively stable, but not consistently increasing, tax benefit.
- Return on Invested Capital (ROIC)
- ROIC mirrored the fluctuations in OPM. It decreased from 7.69% in 2021 to 4.72% in 2022, then rose to 8.83% in 2023 and 8.75% in 2024. A significant decline to 4.75% is observed in 2025. The ROIC’s trajectory is strongly correlated with the changes in Operating Profit Margin, despite the positive trend in Turnover of Capital. The decline in ROIC in 2025, despite improved capital turnover, is primarily driven by the substantial decrease in the Operating Profit Margin.
In summary, while capital efficiency improved consistently, the overall ROIC performance was heavily influenced by the volatility of the Operating Profit Margin. The substantial decline in OPM in 2025 significantly impacted ROIC, overshadowing the benefits of increased capital turnover.
Operating Profit Margin (OPM)
Mondelēz International Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Net revenues | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Net revenues
= 100 × ÷ =
4 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the five-year period. Initial performance was followed by a period of recovery, then a significant decline.
- Operating Profit Margin (OPM) - Overall Trend
- The OPM began at 20.19% in 2021, decreased substantially to 12.76% in 2022, and then recovered to 19.80% in 2023. A further, though less pronounced, decrease to 18.11% occurred in 2024. The most significant shift occurred in 2025, with the OPM falling sharply to 9.91%.
Net operating profit before taxes mirrored the general trend of the OPM, decreasing in 2022, increasing in 2023, decreasing in 2024, and decreasing significantly in 2025. This suggests a strong correlation between profitability and the OPM.
- OPM and Revenue Relationship
- Net revenues demonstrated a consistent upward trend throughout the period, increasing from US$28,720 million in 2021 to US$38,537 million in 2025. However, the OPM did not follow this pattern. Despite increasing revenues, the OPM decreased in both 2022 and, more dramatically, in 2025. This indicates that revenue growth alone did not translate into improved profitability, and that cost management or pricing strategies may have been a factor.
The decline in OPM in 2025, despite continued revenue growth, warrants further investigation. Potential contributing factors could include increased cost of goods sold, higher operating expenses, or changes in product mix. The substantial drop from 18.11% in 2024 to 9.91% in 2025 represents a significant shift in the company’s profitability.
- Year-over-Year Changes
- The largest year-over-year decrease in OPM occurred between 2021 and 2022 (a decrease of 7.43 percentage points) and again between 2024 and 2025 (a decrease of 8.2 percentage points). The largest year-over-year increase occurred between 2022 and 2023 (an increase of 7.04 percentage points).
Turnover of Capital (TO)
Mondelēz International Inc., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Invested capital. See details »
2 2025 Calculation
TO = Net revenues ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The analysis reveals a consistent upward trend in the turnover of capital over the five-year period. This indicates increasing efficiency in how capital is utilized to generate revenue.
- Net Revenues
- Net revenues demonstrate a generally positive trajectory, increasing from $28,720 million in 2021 to $38,537 million in 2025. The largest year-over-year increase occurred between 2022 and 2023, with a substantial rise from $31,496 million to $36,016 million. Growth rates moderate in subsequent years, but remain positive.
- Invested Capital
- Invested capital exhibits relative stability throughout the period. It initially increases from $61,560 million in 2021 to $63,833 million in 2022, then declines to $60,269 million in 2024 before slightly increasing to $61,526 million in 2025. The fluctuations are less pronounced than those observed in net revenues.
- Turnover of Capital (TO)
- The turnover of capital ratio, which measures how efficiently invested capital is used to generate revenue, shows a clear improvement. Starting at 0.47 in 2021, it rises to 0.49 in 2022, then experiences a more significant increase to 0.59 in 2023. This upward momentum continues, reaching 0.60 in 2024 and 0.63 in 2025. This consistent increase suggests the company is becoming more effective at generating sales from its invested capital base.
The combination of increasing net revenues and relatively stable invested capital is the primary driver of the observed improvement in the turnover of capital. The increasing ratio suggests enhanced operational efficiency and a stronger ability to generate sales from existing resources.
Effective Cash Tax Rate (CTR)
Mondelēz International Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Coca-Cola Co. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
The effective cash tax rate exhibited fluctuations over the five-year period. Cash operating taxes and net operating profit before taxes both demonstrate variability, influencing the observed rate changes.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate began at 18.38% in 2021, increasing to 24.96% in 2022. This represents a substantial rise of approximately 6.58 percentage points. A subsequent decrease to 23.80% occurred in 2023, followed by a further decline to 20.12% in 2024. The rate then increased again in 2025, reaching 23.57%.
Net operating profit before taxes decreased significantly from 2021 to 2022, coinciding with the increase in the effective cash tax rate. While NOPBT recovered in 2023, the CTR remained elevated, suggesting factors beyond profit levels were influencing the rate. The decrease in NOPBT in 2025, coupled with a similar CTR to 2023, indicates a consistent relationship between profitability and tax expense.
- Cash Operating Taxes
- Cash operating taxes generally followed the trend of NOPBT, decreasing from US$1,066 million in 2021 to US$1,003 million in 2022, then increasing substantially to US$1,697 million in 2023. A decrease to US$1,328 million was observed in 2024, followed by a further reduction to US$900 million in 2025. This suggests a direct correlation between pre-tax profits and actual cash taxes paid.
The fluctuations in the effective cash tax rate, despite changes in both cash operating taxes and net operating profit before taxes, suggest the presence of other influencing factors, such as changes in tax jurisdictions, utilization of tax credits, or adjustments to deferred tax assets and liabilities. Further investigation would be required to determine the specific drivers behind these variations.