Mondelēz International Inc. (NASDAQ:MDLZ)

The liquidity position of the company exhibits a generally declining trend across the observed period. While fluctuations exist, the ratios consistently suggest a constrained ability to meet short-term obligations with current assets. A review of individual ratios reveals specific patterns contributing to this overall assessment.

Current Ratio

The current ratio decreased from 0.74 in 2021 to 0.60 in 2022, indicating a reduced capacity to cover current liabilities with current assets. A slight recovery to 0.62 was noted in 2023, followed by a further increase to 0.68 in 2024. However, the ratio declined again in 2025, falling to 0.59. This suggests a volatile, but ultimately weakening, short-term asset position relative to liabilities.

Quick Ratio

The quick ratio demonstrates a consistent downward trend throughout the period. Starting at 0.48 in 2021, it decreased to 0.35 in 2022 and continued to decline, reaching 0.33 in 2023 and stabilizing at 0.32 for both 2024 and 2025. This indicates a progressively diminished ability to meet short-term obligations with the most liquid assets, excluding inventory.

Cash Ratio

The cash ratio experienced a significant decrease from 0.25 in 2021 to 0.11 in 2022. It continued to fall to 0.10 in 2023 and reached a low of 0.07 in 2024. A slight increase to 0.10 was observed in 2025, but remains substantially lower than the initial value. This suggests a decreasing reliance on, and availability of, cash and cash equivalents to cover immediate liabilities.

Collectively, these ratios indicate a weakening liquidity profile over the five-year period. The consistent decline in the quick and cash ratios is particularly noteworthy, suggesting a growing dependence on less liquid assets or increased reliance on external financing to meet short-term obligations. The fluctuations in the current ratio, while present, do not offset the overall negative trend.

The current ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased before showing some improvement, then declining again. A consistent pattern of current liabilities exceeding current assets is apparent throughout the observed timeframe.

Current Ratio Trend

The current ratio began at 0.74 in 2021, indicating that current assets covered 74% of current liabilities. A decline was observed in 2022, with the ratio falling to 0.60. A modest increase followed in 2023, reaching 0.62. Further improvement occurred in 2024, with the ratio rising to 0.68. However, this positive trend reversed in 2025, as the current ratio decreased to 0.59.

Asset and Liability Dynamics

Current assets increased from US$10,342 million in 2021 to US$11,703 million in 2023, then rose further to US$13,242 million in 2024 before decreasing slightly to US$12,951 million in 2025. Despite these increases, current liabilities demonstrated a more substantial growth trajectory. They rose from US$14,008 million in 2021 to US$16,731 million in 2022, continued to US$19,013 million in 2023, and reached US$19,549 million in 2024, ultimately reaching US$21,864 million in 2025.

The consistent difference between current assets and current liabilities suggests potential challenges in meeting short-term obligations with current assets. While the ratio experienced some temporary improvements, the overall trend indicates a weakening position in terms of short-term liquidity.

The quick ratio demonstrates a consistent decline over the five-year period, followed by a slight stabilization. Total quick assets experienced fluctuations, while current liabilities steadily increased. This combination resulted in a weakening quick ratio, indicating a diminishing ability to meet short-term obligations with highly liquid assets.

Quick Ratio Trend

The quick ratio decreased from 0.48 in 2021 to 0.32 in 2024, representing a substantial reduction in liquidity. The ratio remained at 0.32 in 2025, suggesting the decline has stabilized, but not reversed. This indicates a progressively constrained capacity to cover immediate liabilities without relying on inventory sales.

Quick Assets

Total quick assets decreased from US$6,734 million in 2021 to US$5,830 million in 2022, a notable drop. A modest recovery to US$6,322 million occurred in 2023, followed by a further decrease to US$6,162 million in 2024. Finally, quick assets increased to US$6,983 million in 2025, representing the highest value in the observed period. Despite this increase, the growth in current liabilities outpaced the growth in quick assets.

Current Liabilities

Current liabilities exhibited a consistent upward trend throughout the period. From US$14,008 million in 2021, they rose to US$16,731 million in 2022, US$19,013 million in 2023, US$19,549 million in 2024, and reached US$21,864 million in 2025. This continuous increase in short-term obligations, coupled with the fluctuating quick assets, contributed to the declining quick ratio.

The observed trend suggests a growing reliance on managing working capital effectively to meet short-term obligations. While the quick ratio stabilized in the most recent year, the overall trend indicates a weakening liquidity position that warrants continued monitoring.

The cash ratio demonstrates a declining trend from 2021 to 2024, followed by a slight recovery in 2025. This indicates a decreasing ability to cover immediate current liabilities with only cash and cash equivalents over the analyzed period, with a partial rebound in the most recent year.

Cash Ratio Trend

The cash ratio decreased significantly from 0.25 in 2021 to 0.07 in 2024. This represents a substantial reduction in the proportion of current liabilities covered by available cash. The ratio then increased to 0.10 in 2025, suggesting a modest improvement in short-term liquidity.

Total Cash Assets

Total cash assets decreased from US$3,546 million in 2021 to US$1,351 million in 2024, contributing to the decline in the cash ratio. A subsequent increase to US$2,125 million in 2025 partially offset this earlier reduction.

Current Liabilities

Current liabilities consistently increased throughout the period, rising from US$14,008 million in 2021 to US$21,864 million in 2025. This upward trend in obligations, coupled with the initial decrease in cash assets, exacerbated the decline in the cash ratio.

The combination of decreasing cash holdings and increasing current liabilities resulted in a weakening cash ratio position from 2021 to 2024. The 2025 figures indicate a potential stabilization, but the ratio remains considerably lower than its value in 2021.