Mondelēz International Inc. (NASDAQ:MDLZ)

The financial ratios presented demonstrate varied trends over the five-year period. Generally, adjusted ratios exhibit similar patterns to their reported counterparts, though magnitude differences exist. Asset turnover shows a consistent, albeit modest, increase, while liquidity, leverage, and profitability metrics display more fluctuation.

Asset Turnover

Both reported and adjusted total asset turnover ratios show a steady upward trend, increasing from 0.43 in 2021 to 0.54 in 2025. This suggests a gradual improvement in the efficiency with which assets are used to generate revenue. The adjusted and reported values remain consistently aligned.

Liquidity

The reported current ratio decreased from 0.74 in 2021 to 0.60 in 2022, then increased to 0.68 in 2023 before declining again to 0.59 in 2025. The adjusted current ratio follows a similar pattern. This indicates some volatility in short-term liquidity, with a slight weakening trend overall. The adjusted values are generally slightly higher than the reported values.

Leverage

Reported debt to equity increased from 0.69 in 2021 to 0.85 in 2022, then decreased to 0.66 in 2023, before increasing to 0.82 in 2025. The adjusted debt to equity ratio shows a similar pattern, but with lower magnitudes. Reported debt to capital remained relatively stable, fluctuating between 0.40 and 0.46. The adjusted debt to capital ratio mirrors this stability. Financial leverage, both reported and adjusted, increased over the period, from 2.37 to 2.77, indicating a greater reliance on debt financing.

Profitability

Reported net profit margin experienced significant volatility, decreasing sharply from 14.97% in 2021 to 8.63% in 2022, then recovering to 13.77% in 2023, decreasing to 12.65% in 2024, and finally falling to 6.36% in 2025. The adjusted net profit margin shows a similar trend, though the decline in 2022 is more pronounced and the recovery in 2024 is less substantial. Both reported and adjusted return on equity (ROE) and return on assets (ROA) followed similar fluctuating patterns, with ROE decreasing from 15.21% to 9.49% and ROA decreasing from 6.41% to 3.43% over the period. The adjusted values generally show lower profitability percentages than the reported values.

The adjustments made to these ratios consistently result in slightly different values compared to the reported figures. These differences, while not substantial, suggest that the adjustments account for specific items impacting the financial position and performance. The overall trend suggests increasing asset utilization and financial leverage, coupled with fluctuating liquidity and profitability.

The financial information presents a five-year trend of net revenues, total assets, reported total asset turnover, adjusted total assets, and adjusted total asset turnover. Net revenues demonstrate a consistent upward trajectory, increasing from US$28,720 million in 2021 to US$38,537 million in 2025. Total assets exhibit relative stability with minor fluctuations, beginning at US$67,092 million in 2021, peaking at US$71,391 million in 2023, decreasing to US$68,497 million in 2024, and then rising to US$71,487 million in 2025.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows a generally increasing trend over the five-year period. It remains constant at 0.43 in both 2021 and 2022. A noticeable increase is observed in 2023, rising to 0.51, and continues to climb to 0.53 in 2024 and 0.54 in 2025. This indicates a growing efficiency in utilizing assets to generate revenue.

The reported total asset turnover mirrors the trend of the adjusted total asset turnover, remaining at 0.43 in 2021 and 2022, increasing to 0.50 in 2023, and reaching 0.53 and 0.54 in 2024 and 2025 respectively. The consistency between the reported and adjusted ratios suggests that adjustments to total assets do not materially alter the overall assessment of asset utilization efficiency.

Relationship between Revenue and Adjusted Assets

The growth in net revenues, coupled with the relatively stable adjusted total assets, directly contributes to the observed increase in the adjusted total asset turnover ratio. The company appears to be generating more revenue with a similar level of asset investment, suggesting improved operational efficiency or effective asset management strategies.

The slight decrease in adjusted total assets in 2024 did not impede the continued growth in the adjusted total asset turnover ratio, further supporting the conclusion that revenue generation is becoming more efficient relative to the asset base.

The reported and adjusted current ratios exhibit similar trends over the five-year period. Initially, the ratios decline, then show a slight improvement before decreasing again in the most recent year. The adjusted current ratio fluctuates between 0.60 and 0.74, consistently indicating that current liabilities exceed current assets.

Current Ratio Trend

The reported current ratio decreased from 0.74 in 2021 to 0.60 in 2022, reflecting a worsening short-term liquidity position. A modest recovery to 0.62 was observed in 2023, followed by a further improvement to 0.68 in 2024. However, the ratio declined again to 0.59 in 2025, indicating a renewed weakening in the company’s ability to cover short-term obligations with short-term assets.

Adjusted Current Ratio Trend

The adjusted current ratio mirrors the trend of the reported current ratio. It began at 0.74 in 2021, decreased to 0.61 in 2022, and increased to 0.62 in 2023. The ratio peaked at 0.68 in 2024 before falling to 0.60 in 2025. The adjustments to current assets appear to have a minimal impact on the overall trend and magnitude of the ratio.

Magnitude of Ratios

Throughout the period, both the reported and adjusted current ratios remain below 1.0. This consistently suggests that the company does not possess sufficient liquid assets to meet its immediate liabilities. The ratios’ proximity to 0.60 indicates a potentially concerning level of short-term financial risk, requiring careful monitoring of cash flow and working capital management.

Asset and Liability Dynamics

Current assets generally increased over the period, rising from US$10,342 million in 2021 to US$13,242 million in 2024, before decreasing slightly to US$12,951 million in 2025. However, current liabilities experienced a more substantial increase, growing from US$14,008 million in 2021 to US$21,864 million in 2025. This disparity between the growth of assets and liabilities is the primary driver of the declining current ratios.

The consistent difference between reported and adjusted current assets is minimal, suggesting that the adjustments made are not substantial enough to significantly alter the overall assessment of the company’s short-term liquidity.

The adjusted debt to equity ratio for the period demonstrates fluctuations over the five-year span. While exhibiting some stability, a discernible pattern of initial decrease followed by a rise is observed. Total debt shows an initial increase from 2021 to 2022, then a decrease through 2024, before increasing again in 2025. Total shareholders’ equity generally declines throughout the period, though not consistently.

Adjusted Debt to Equity Ratio - Overall Trend

The adjusted debt to equity ratio begins at 0.64 in 2021, decreases to 0.61 in 2024, and then increases to 0.75 in 2025. This suggests a slight increase in financial leverage towards the end of the analyzed period. The ratio remains below 0.80 for the majority of the period, indicating a moderate level of debt relative to equity.

Adjusted Debt to Equity Ratio - Year-over-Year Changes

From 2021 to 2022, the adjusted debt to equity ratio increased from 0.64 to 0.78, reflecting a greater reliance on debt financing. A stable ratio of 0.64 was maintained in 2022 and 2023. The ratio then decreased to 0.61 in 2024, indicating a reduction in leverage. Finally, the ratio increased to 0.75 in 2025, reversing the prior year’s trend.

Debt and Equity Components

Adjusted total debt increased from US$20,145 million in 2021 to US$23,613 million in 2022, then decreased to US$18,544 million in 2024, before rising to US$21,968 million in 2025. Adjusted total equity decreased steadily from US$31,523 million in 2021 to US$29,279 million in 2025. The combined effect of these movements contributes to the observed fluctuations in the adjusted debt to equity ratio.

The observed changes in the adjusted debt to equity ratio warrant further investigation to understand the underlying drivers, such as capital structure decisions, profitability, and dividend policies. The increase in the ratio in 2025, coupled with the declining equity base, may suggest a shift in financing strategy or operational challenges.

The information presents a five-year trend of debt and capital figures, culminating in adjusted debt-to-capital ratios. Total debt exhibited volatility over the period, initially increasing from 2021 to 2022, then decreasing in subsequent years before rising again in 2025. Total capital followed a similar pattern, with an initial increase followed by a decline and a final increase. The reported debt-to-capital ratio mirrored these fluctuations, ranging from 0.40 to 0.46.

Adjusted Debt to Capital – Overall Trend

The adjusted debt-to-capital ratio demonstrated a generally stable trend, fluctuating between 0.38 and 0.44 over the five-year period. It began at 0.39 in 2021, rose to 0.44 in 2022, then decreased to 0.38 in 2024, before increasing to 0.43 in 2025. This suggests a moderate level of financial leverage that remained relatively consistent despite changes in overall debt and capital structures.

Adjusted Debt and Capital – Comparative Analysis

Adjusted total debt increased from US$20.145 billion in 2021 to US$23.613 billion in 2022, then decreased to US$18.544 billion in 2024, and finally rose to US$21.968 billion in 2025. Adjusted total capital followed a similar trajectory, moving from US$51.668 billion in 2021 to US$53.765 billion in 2022, decreasing to US$48.856 billion in 2024, and increasing to US$51.247 billion in 2025. The parallel movements of adjusted debt and capital contribute to the relative stability observed in the adjusted debt-to-capital ratio.

The difference between the reported and adjusted figures indicates the presence of items impacting the capital structure that are being accounted for in the adjusted calculations. The adjustments consistently result in a slightly lower debt-to-capital ratio compared to the reported figures, suggesting that the adjustments relate to items that reduce the calculated debt or increase the calculated capital.

Year-over-Year Changes

The largest year-over-year increase in the adjusted debt-to-capital ratio occurred between 2021 and 2022, rising from 0.39 to 0.44. The most significant decrease was observed between 2023 and 2024, falling from 0.39 to 0.38. The most recent year, 2025, shows an increase of 0.05 from 2024, indicating a potential shift in the company’s financial leverage.

An examination of the financial information reveals trends in the company’s financial leverage, both as reported and as adjusted. Total assets exhibited a general increasing trend from 2021 to 2025, with a slight dip in 2024, ultimately reaching a value comparable to that of 2023. Total Mondelēz International shareholders’ equity demonstrated a more volatile pattern, decreasing in 2022 and 2025, while increasing in 2021 and 2023, and decreasing again in 2024.

Reported Financial Leverage

Reported financial leverage increased from 2.37 in 2021 to 2.65 in 2022, before decreasing slightly to 2.52 in 2023 and remaining relatively stable at 2.54 in 2024. A further increase to 2.77 was observed in 2025, indicating a growing reliance on debt financing relative to equity as measured by the reported figures.

Adjusted Total Assets and Equity

Adjusted total assets mirrored the trend of reported total assets, with an increase from 2021 to 2025, and a dip in 2024. Adjusted total equity also followed a similar pattern to reported equity, with fluctuations throughout the period. The difference between reported and adjusted values suggests potential impacts from specific accounting treatments or adjustments made to these figures.

Adjusted Financial Leverage

Adjusted financial leverage showed an increasing trend from 2.11 in 2021 to 2.35 in 2022, followed by a decrease to 2.25 in both 2023 and 2024. A subsequent increase to 2.43 was noted in 2025. The adjusted leverage ratio consistently remained lower than the reported leverage ratio across all observed periods, suggesting that the adjustments reduce the apparent level of financial risk. The trend indicates a moderate increase in financial leverage when considering the adjusted figures, though less pronounced than the trend observed in the reported leverage.

The divergence between reported and adjusted financial leverage suggests that the adjustments have a material impact on the assessment of the company’s financial risk profile. Further investigation into the nature of these adjustments would be necessary to fully understand their implications.

The adjusted net profit margin exhibited fluctuations over the five-year period. Initial values were relatively high, followed by a significant decline, and then a partial recovery. A detailed examination of the trends is presented below.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin began at 15.54% in 2021. It experienced a substantial decrease to 7.32% in 2022 before stabilizing at 13.77% in 2023. A further decline to 9.03% occurred in 2024, followed by a modest increase to 9.26% in 2025. This indicates a period of volatility with no clear sustained upward or downward trajectory.

Comparison with Reported Net Profit Margin

The adjusted net profit margin generally tracked the reported net profit margin, but with notable differences. In 2021 and 2023, the adjusted margin was higher than the reported margin, suggesting that adjustments added approximately 0.57 and 0.00 percentage points, respectively. The largest difference was observed in 2022, where the adjusted margin was 1.31 percentage points lower than the reported margin. In 2024 and 2025, the adjusted margin was lower than the reported margin by 3.62 and 2.90 percentage points, respectively.

Relationship to Net Revenues

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, this revenue growth did not consistently translate into improved adjusted profitability. While the adjusted net profit margin increased alongside revenue in 2023, it decreased in 2022 and 2024 despite revenue gains. This suggests that factors beyond revenue, such as cost of goods sold or operating expenses, significantly impacted profitability.

Year-over-Year Changes

The largest year-over-year decrease in adjusted net profit margin occurred between 2021 and 2022, with a decline of 8.22 percentage points. The most substantial increase was observed between 2022 and 2023, with an improvement of 6.45 percentage points. The change from 2024 to 2025 was minimal, representing an increase of 0.23 percentage points.

In summary, the adjusted net profit margin experienced considerable fluctuation during the analyzed period. While revenue consistently increased, the adjusted profitability did not follow a corresponding pattern, indicating the influence of other financial factors on the company’s performance.

The adjusted return on equity (ROE) exhibited fluctuations over the five-year period. Initial values decreased before stabilizing and then increasing again. A review of the components contributing to this metric reveals further insights into the company’s performance.

Adjusted ROE Trend

The adjusted ROE began at 14.15% in 2021, declining significantly to 7.64% in 2022. A recovery was then observed, with the adjusted ROE rising to 15.72% in 2023. This upward momentum slowed in 2024, with a decrease to 10.85%, followed by an increase to 12.19% in 2025.

Adjusted Net Earnings

Adjusted net earnings followed a similar pattern to the adjusted ROE. A decrease from US$4,462 million in 2021 to US$2,304 million in 2022 was noted. Subsequent years saw increases, reaching US$4,961 million in 2023, before declining to US$3,290 million in 2024 and then increasing to US$3,569 million in 2025. These fluctuations directly impacted the adjusted ROE.

Adjusted Total Equity

Adjusted total equity demonstrated a more stable trend. It began at US$31,523 million in 2021, decreased to US$30,152 million in 2022, and then increased to US$31,557 million in 2023. A slight decrease to US$30,312 million occurred in 2024, followed by a further decrease to US$29,279 million in 2025. While relatively stable, the declining trend in adjusted total equity in the latter years partially offset the positive impact of increasing adjusted net earnings on the adjusted ROE.

Comparison to Reported ROE

The adjusted ROE consistently differed from the reported ROE throughout the period. The largest discrepancies were observed in 2022 and 2025, suggesting that adjustments made to net earnings and total equity had a substantial impact on the overall return metric. The reported ROE mirrored the adjusted ROE trend, but with differing magnitudes.

In summary, the adjusted ROE experienced volatility, influenced by fluctuations in adjusted net earnings and, to a lesser extent, adjusted total equity. The adjustments made to both net earnings and equity significantly altered the reported ROE, indicating the importance of considering these adjustments when evaluating the company’s profitability relative to shareholder investment.

The adjusted return on assets (ROA) exhibited fluctuations over the five-year period. Initial values were relatively strong, followed by a decline, and then a partial recovery. A comparison of reported and adjusted ROA reveals the impact of specific adjustments made to net earnings and total assets.

Adjusted ROA Trend

Adjusted ROA began at 6.70% in 2021, decreased to 3.25% in 2022, and then increased to 6.98% in 2023. A subsequent decline to 4.82% occurred in 2024, followed by a modest increase to 5.01% in 2025. This pattern suggests sensitivity to underlying earnings and asset adjustments.

Comparison with Reported ROA

In each year, the adjusted ROA differed from the reported ROA. The largest difference was observed in 2022, where the adjusted ROA (3.25%) was notably lower than the reported ROA (3.82%). In 2021 and 2023, the adjusted ROA was slightly higher than the reported ROA (6.70% vs 6.41% and 6.98% vs 6.95% respectively). The difference in 2024 was more pronounced, with the adjusted ROA at 4.82% compared to the reported 6.73%. The 2025 difference was also significant, with adjusted ROA at 5.01% versus reported 3.43%.

Adjusted Net Earnings Impact

Adjusted net earnings generally tracked the trend of adjusted ROA, decreasing from US$4,462 million in 2021 to US$2,304 million in 2022, increasing to US$4,961 million in 2023, decreasing to US$3,290 million in 2024, and then increasing to US$3,569 million in 2025. This indicates that changes in adjusted net earnings were a primary driver of the fluctuations in adjusted ROA.

Adjusted Total Assets Impact

Adjusted total assets remained relatively stable throughout the period, ranging from US$66,637 million to US$71,221 million. While some year-over-year changes occurred, they were less dramatic than the changes observed in adjusted net earnings, suggesting that asset adjustments had a less significant impact on adjusted ROA compared to earnings adjustments.

Overall, the adjusted ROA demonstrates a cyclical pattern influenced primarily by adjustments to net earnings. The differences between reported and adjusted ROA highlight the importance of understanding the nature of these adjustments when evaluating the company’s profitability relative to its assets.