Mondelēz International Inc. (NASDAQ:MDLZ)

Return on Assets (ROA)

The Return on Assets shows a generally positive trend starting from 5.24% in March 31, 2020, and reaching peaks above 6.9% during some quarters, notably in December 31, 2023, with 6.95%. However, there are fluctuations, including a noticeable decline to 3.82% in December 31, 2022, followed by a recovery period through 2023 and reaching another peak before falling again to 5.22% by March 31, 2025. This pattern indicates variability in asset utilization efficiency, with periods of both improvement and decline.

Financial Leverage

The Financial Leverage ratio remains relatively stable over the observed period, fluctuating mildly between 2.37 and 2.73. Beginning at 2.48 in March 31, 2020, the ratio slightly decreased until the end of 2021, reaching the lowest point at 2.37. Subsequently, there is a gradual increase observed, peaking at 2.73 by June 30, 2024, then a slight decrease towards the end of the period with 2.67 by March 31, 2025. Overall, financial leverage indicates moderate consistency with some upward pressure in recent years, suggesting cautious use of debt relative to equity.

Return on Equity (ROE)

The Return on Equity exhibits an upward trend from 12.89% in March 31, 2020, reaching a high of 17.5% in December 31, 2023. There is a period of volatility during 2022, when ROE decreased from above 15% to around 10.11% before rebounding sharply in 2023. The subsequent quarters show high ROE values fluctuating between approximately 13.7% and 17.12%, with a further decline noted at the end of the period to 13.97% in March 31, 2025. This suggests improvements in profitability attributable to shareholders, albeit with intermittent periods of reduced returns.

General Observations

Both profitability measures (ROA and ROE) demonstrate cyclical movements with phases of rise and decline over the analyzed years, while financial leverage remains comparatively stable with slight increases. The interplay of these ratios reflects an ongoing balance between asset efficiency, profitability, and financial structure management. The data points to a company maintaining profitability with some sensitivity to market or operational conditions, and exercising prudence in its leverage strategy.

The company’s financial performance over the observed periods reveals distinct trends across key profitability and efficiency metrics. Notably, the net profit margin shows an initial increase from March 2021, peaking around December 2021 at approximately 15.7%. Following this peak, a gradual decline is observed into early 2023, reaching a low near 8.63%. Subsequently, net profit margin recovers moderately through 2023 and early 2024, although it appears to fluctuate within a range roughly between 9.88% and 13.77% towards the end of the dataset.

Asset turnover demonstrates a steady upward trend across the periods with data, starting at 0.39 in March 2021 and reaching approximately 0.53 by December 2024. This consistent improvement suggests enhanced efficiency in utilizing assets to generate revenue over time, marking positive operational progress.

Financial leverage ratios mostly range between 2.37 and 2.73 during the available periods, displaying moderate fluctuations without a significant upward or downward long-term trend. A slight increase is noted around late 2022 and again in mid-2024, indicating occasional changes in the degree of debt relative to equity but overall maintaining a relatively stable leverage position.

The return on equity (ROE) echoes the patterns observed in net profit margin, showing growth from March 2021 with a peak near 17.5% at December 2023. This is followed by a decline into 2024, where ROE fluctuates between approximately 13.7% and 17.1%. The ROE values generally correspond to the combined effects of profitability, asset efficiency, and financial leverage, reflecting overall shareholder return performance.

Profitability Trends

After a rising trend in net profit margins up to late 2021, the margins experience a notable decline into early 2023, followed by partial recovery and fluctuations thereafter. This pattern indicates varying profitability dynamics potentially influenced by market or operational factors.

Efficiency Improvements

Asset turnover steadily improves across all periods available, reflecting progressively better asset utilization and operational efficiency in generating revenues.

Leverage Stability

Financial leverage remains relatively stable overall, with minor increases during certain periods, suggesting controlled use of debt without major shifts in capital structure strategy.

Shareholder Returns

ROE follows profitability trends closely, highlighting periods of strong return generation in late 2021 and 2023, and a moderate downturn in 2024, which may relate to external conditions or internal operational changes affecting earnings and efficiency.

Overall, the company exhibits improving efficiency in asset utilization and generally stable leverage with profitability and returns showing more volatility. The interplay of these factors suggests continued focus on operational effectiveness and managing profitability drivers to enhance shareholder value.

The financial data reveals several notable trends in profitability and operational efficiency over the observed quarters.

Net Profit Margin

The net profit margin shows an initial positive trend starting from 13.37% in March 2021, reaching a peak of 15.7% by December 2021. After this peak, a gradual decline is observed throughout 2022, dipping to 10.3% by December 2022. Subsequently, the margin experiences some recovery, fluctuating around 12-13% during 2023, before declining again towards the end of the period, ending at 9.88% in March 2025. This pattern suggests periods of strong profitability followed by challenges that reduced margins, with partial recovery but persisting volatility in recent quarters.

Asset Turnover

Asset turnover demonstrates a steady upward trajectory across the period, increasing from 0.39 in March 2021 to 0.53 by December 2024 and maintaining this level into March 2025. This consistent improvement indicates enhanced efficiency in utilizing assets to generate sales, reflecting positively on operational management and possible growth in asset productivity over time.

Return on Assets (ROA)

Return on assets follows a somewhat similar pattern to net profit margin, with an initial improvement from 5.24% in March 2021 to a high of 6.95% in December 2023. This is followed by a decline throughout 2024, dropping to 5.22% by March 2025. The ROA trend appears to correlate with fluctuations in profit margin, suggesting variations in profitability have a significant impact on overall returns generated from assets. Despite the decline in later periods, ROA remains elevated relative to early measurements.

Overall, the data reflects periods of strengthened profitability and asset utilization efficiency, contrasted by phases of declining margins and asset returns, which implies a dynamic operating environment with intermittent challenges affecting financial performance. Asset efficiency improvements appear more consistent compared to profitability metrics, which show increased volatility.