Mondelēz International Inc. (NASDAQ:MDLZ)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes shows notable fluctuations over the five-year period. Starting at $3,858 million in 2020, it increased significantly to $4,733 million in 2021, followed by a sharp decline to $3,016 million in 2022. Subsequently, there was a strong recovery, reaching $5,433 million in 2023, with a slight decrease to $5,271 million in 2024. This pattern indicates volatility in operating profitability with a rebound in recent years.

Invested Capital

The invested capital remained relatively stable throughout the period, fluctuating within a narrow range. It began at $61,366 million in 2020, experienced a slight increase to $61,560 million in 2021, and further to $63,833 million in 2022. However, it then declined to $61,495 million in 2023 and continued a downward trend to $60,269 million in 2024. Overall, the invested capital shows minor adjustments without significant expansion or contraction.

Return on Invested Capital (ROIC)

The ROIC exhibits variability closely aligned with changes in net operating profit. Starting at 6.29% in 2020, it improved to 7.69% in 2021 but decreased considerably to 4.72% in 2022. Thereafter, it increased markedly to 8.83% in 2023 and remained relatively stable at 8.75% in 2024. This reflects an improved efficiency in generating returns from invested capital especially from 2023 onwards, following the dip in 2022.

Operating Profit Margin (OPM)

The operating profit margin showed a general decline over the observed periods. Starting at 19.73% in 2020, it increased slightly to 20.19% in 2021 before sharply dropping to 12.76% in 2022. Recovery was observed in 2023, reaching 19.8%, but the margin decreased again to 18.11% in 2024. This indicates volatility in operating profitability, with a significant dip in 2022 followed by partial recovery.

Turnover of Capital (TO)

The turnover of capital exhibited a consistent upward trend throughout the timeframe. It increased steadily from 0.43 in 2020 to 0.6 by 2024. This suggests an improving efficiency in the use of capital to generate revenue, reflecting better asset utilization or sales growth relative to the capital base.

1 – Effective Cash Tax Rate (CTR)

The measure for 1 minus the effective cash tax rate presented fluctuations but generally remained high. It rose from 73.55% in 2020 to 81.62% in 2021, declined to 75.04% in 2022, then increased again to 76.2% in 2023 and 79.88% in 2024. These variations imply changes in tax management or tax expense, with the company maintaining a relatively high portion of pre-tax earnings after cash taxes.

Return on Invested Capital (ROIC)

The return on invested capital showed variability with a trend of improvement towards the end of the period. Starting at 6.29% in 2020, ROIC increased to 7.69% in 2021, declined sharply to 4.72% in 2022, followed by a recovery to 8.83% in 2023 and a slight decrease to 8.75% in 2024. This pattern suggests fluctuations in how effectively the company generated returns from its invested capital, with notable improvement after 2022.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes exhibited fluctuations over the analyzed period. It increased from 5,245 million US dollars in 2020 to 5,799 million in 2021, followed by a significant decline to 4,019 million in 2022. Subsequently, it rose sharply to 7,130 million in 2023 before decreasing again to 6,599 million in 2024. This pattern indicates variability in profitability, with a notable recovery after the dip in 2022.

Net Revenues

Net revenues demonstrated a consistent upward trend throughout the period. Revenues grew steadily from 26,581 million US dollars in 2020 to 28,720 million in 2021, then to 31,496 million in 2022, continuing to 36,016 million in 2023, and moderately increasing further to 36,441 million in 2024. This reflects sustained growth in sales or service income over the years.

Operating Profit Margin (OPM)

The operating profit margin showed variability aligned somewhat with the net operating profit before taxes. It started at 19.73% in 2020 and slightly increased to 20.19% in 2021. There was a marked decrease to 12.76% in 2022, corresponding to the decline in NOPBT. The margin recovered to 19.8% in 2023 but then declined again to 18.11% in 2024. This suggests that the efficiency in generating operating profit from revenue was strong except for the significant dip in 2022 and a slight weakening in 2024.

Net Revenues

Net revenues have demonstrated a consistent upward trend over the five-year period. Starting at $26,581 million in 2020, revenues increased each year, reaching $36,441 million by 2024. The growth rate appears steady, reflecting a positive trajectory in sales or operational performance.

Invested Capital

The invested capital shows some fluctuation across the years. Initially rising slightly from $61,366 million in 2020 to a peak of $63,833 million in 2022, it subsequently declined to $60,269 million by 2024. The reduction in invested capital in the last two years may indicate divestitures, improved asset efficiency, or capital restructuring.

Turnover of Capital (TO)

The turnover of capital ratio has improved notably over the period. Starting at 0.43 in 2020, it steadily increased to 0.60 in 2024. This suggests enhanced efficiency in utilizing the invested capital to generate revenue, reaching the highest ratio in the final year observed.

Overall Insights

The concurrent increase in net revenues alongside a relatively stable or slightly declining invested capital, accompanied by an improving capital turnover ratio, indicates that the company has become more efficient in deploying its capital to produce revenue. This favorable trend signifies effective management of resources and operational growth during the period analyzed.

The financial data reveals several notable trends over the five-year period ending December 31, 2024.

Cash Operating Taxes

Cash operating taxes declined from $1,387 million in 2020 to a low of $1,003 million in 2022, indicating a significant reduction over the first three years. However, there was a notable rebound to $1,697 million in 2023, followed by a decrease to $1,328 million in 2024. This fluctuation suggests variability in tax payments, potentially influenced by changing profitability or tax planning strategies.

Net Operating Profit Before Taxes (NOPBT)

NOPBT showed varied performance over the period. Starting at $5,245 million in 2020, it increased to $5,799 million in 2021, indicating growth in operating profit. However, 2022 saw a sharp decline to $4,019 million, the lowest point in the timeframe. This was followed by a strong recovery to $7,130 million in 2023, the highest value recorded, before slightly decreasing to $6,599 million in 2024. These movements suggest volatility in operational efficiency or market conditions affecting profitability.

Effective Cash Tax Rate (CTR)

The effective cash tax rate displayed a declining trend over the period. Starting at 26.45% in 2020, it dropped significantly to 18.38% in 2021. While it increased again to 24.96% in 2022, it then gradually declined to 23.8% in 2023 and further to 20.12% in 2024. This pattern implies an overall reduction in tax burden relative to profits, possibly through tax planning or changes in tax regulations.

In summary, the profitability experienced fluctuations with a notable dip in 2022 followed by recovery, while cash taxes mirrored these changes with some lag and variability. The effective cash tax rate generally decreased across the years, indicating improved tax efficiency or beneficial tax strategies. These combined factors reflect a dynamic financial environment with adjustments in profit levels and tax management practices over the reported period.