Mondelēz International Inc. (NASDAQ:MDLZ)

The analysis of the quarterly financial data for the specified periods reveals discernible trends in key profitability and leverage metrics. The review encompasses Return on Assets (ROA), Financial Leverage, and Return on Equity (ROE).

Return on Assets (ROA)

ROA displays fluctuations throughout the observed timeframe. Initially, there is a general increase from 5.7% in March 2021 to a peak of 6.61% in September 2021, followed by a gradual decline reaching a low of 3.82% in December 2022. Subsequently, ROA recovers steadily to a high of 6.95% in December 2023. Afterwards, the metric shows a moderate decrease, settling around 4.95% by September 2025. This pattern indicates periods of improving asset efficiency followed by some contraction, with notable recovery phases suggested around late 2023.

Financial Leverage

Financial Leverage remains relatively stable but trends slightly upward over the period analyzed. Starting at 2.45 in March 2021, the ratio experiences minor oscillations but generally increases, moving from approximately 2.37 in December 2021 to 2.73 by September 2025. This gradual rise suggests a modest increase in the company’s use of debt relative to equity, implying a slightly higher financial risk profile over time.

Return on Equity (ROE)

ROE follows a somewhat similar trajectory to ROA but with more pronounced peaks and troughs. Beginning at 13.96% in March 2021, ROE rises to a peak of 16.08% in September 2021 before declining to 10.11% in December 2022. Following this downturn, ROE exhibits a significant rebound, reaching 17.5% in December 2023. The subsequent trend shows a decrease, with ROE dropping to 13.49% by September 2025. The volatility in ROE, alongside the stable and slightly increasing financial leverage, implies that changes in profitability and financial structure have jointly influenced equity returns.

Overall, the data suggest that the company experienced cycles of profitability, with asset returns and equity returns peaking notably around late 2023 before tapering off towards 2025. The incremental increase in financial leverage indicates a cautious but steady rise in indebtedness, which may factor into the returning trends of ROE and ROA. The interplay between these metrics highlights the balance between operational performance and financial strategy over the observed quarters.

Net Profit Margin

The net profit margin exhibited a declining trend from early 2021 through late 2022, falling from approximately 14% to below 9%, indicating decreasing profitability during this period. However, starting in early 2023, the margin showed some recovery, peaking around 13.77% by the end of 2023. Despite this improvement, the margin again declined gradually through 2025, ending near 9.4%. This pattern suggests cyclical fluctuations with an overall downward pressure on profitability margins over the five-year span.

Asset Turnover

The asset turnover ratio demonstrated a general upward trend across the time frame. Beginning at roughly 0.41 in the first quarter of 2021, it incrementally increased to approximately 0.53 by the end of 2025. This steady increase signifies enhanced efficiency in utilizing assets to generate sales, reflecting positively on operational performance despite fluctuations in profit margins.

Financial Leverage

Financial leverage ratios remained relatively stable with slight fluctuations, generally oscillating between 2.37 and 2.73. The ratio shows a modest increase towards the latter part of the period, indicating a slight rise in the use of debt or financial obligations relative to equity. This consistency implies a conservative approach to leveraging, without significant shifts in capital structure risk.

Return on Equity (ROE)

ROE followed a pattern similar to net profit margin, with an initial decline from about 14% in early 2021 to just above 10% by late 2022, then an improvement through 2023 reaching a peak around 17.5%. Subsequently, ROE again sank to the range of approximately 13.5% by the end of 2025. These fluctuations indicate varying profitability and effectiveness in generating shareholder returns, partially influenced by changes in profit margin and asset turnover.

Net Profit Margin

The net profit margin exhibits a fluctuating trend over the observed periods. Initially, there is an upward movement from 13.94% to a peak of 15.7% within the first three quarters of 2021, followed by a gradual decline reaching a low of 8.63% by the end of 2022. In 2023, the margin improves again, rising to 13.77% at year-end, but subsequently trends downward through 2024 and into early 2025, stabilizing in the 9-10% range. This pattern reflects periods of profitability pressure interspersed with temporary recovery, suggesting variable cost management or revenue challenges across quarters.

Asset Turnover

The asset turnover ratio shows a steady and modest ascending trend throughout the periods analyzed. Starting from 0.41 in early 2021, the ratio consistently increases with minor fluctuations, reaching approximately 0.53 by late 2024 and early 2025. This improvement indicates enhanced efficiency in utilizing assets to generate sales, suggesting operational improvements or asset base optimization over time.

Return on Assets (ROA)

The return on assets follows a pattern largely correlated with net profit margin movements. ROA begins at 5.7% in early 2021, climbing to a peak of 6.61% by late 2021 before declining to 3.82% at the end of 2022. It then recovers to 6.95% by the last quarter of 2023 but again decreases to just below 5% by early 2025. This variability in ROA reflects the combined effects of changes in net profitability and asset turnover, underscoring inconsistent profitability relative to asset investments during the time horizon.