Mondelēz International Inc. (NASDAQ:MDLZ)

Current Ratio

The current ratio demonstrates a fluctuating trend over the five-year period. It increased from 0.66 at the end of 2020 to 0.74 in 2021, indicating an improvement in short-term liquidity during that period. However, it then declined notably to 0.6 in 2022 and remained relatively stable with a slight increase to 0.62 in 2023 and 0.68 in 2024. Despite this recent uptick, the ratio consistently stayed below 1.0, suggesting ongoing challenges in meeting short-term liabilities solely with current assets.

Quick Ratio

The quick ratio shows a declining trajectory throughout the observed periods. Starting at 0.43 in 2020, it increased marginally to 0.48 in 2021 but then decreased sharply to 0.35 in 2022. The downward trend continued with further reductions to 0.33 in 2023 and 0.32 in 2024. This decline indicates a diminishing capacity to cover current liabilities with the most liquid assets, excluding inventories, which may point to reduced immediate liquidity strength.

Cash Ratio

The cash ratio exhibits a clear and pronounced downward trend. Beginning at 0.24 in 2020 and slightly increasing to 0.25 in 2021, it then steadily decreased to 0.11 in 2022, followed by further reductions to 0.10 in 2023 and 0.07 in 2024. This pattern highlights a decreasing amount of cash and cash equivalents relative to current liabilities, representing a contraction in the company’s most liquid form of short-term financial resources.

Current assets

Current assets exhibit a generally increasing trend over the five-year period. Starting at 9,979 million US dollars at the end of 2020, the value rises to 10,342 million in 2021, slightly decreasing to 10,091 million in 2022, before continuing the upward trend to 11,703 million in 2023 and reaching 13,242 million in 2024. This suggests an overall strengthening of short-term resources available to the company.

Current liabilities

Current liabilities have shown significant fluctuation and an overall increasing pattern. Beginning at 15,159 million US dollars in 2020, liabilities decreased to 14,008 million in 2021 but then increased sharply to 16,731 million in 2022. The upward trend continued with 19,013 million in 2023 and 19,549 million in 2024. This growing liability obligation may indicate increasing short-term financial commitments.

Current ratio

The current ratio, which measures the company’s ability to cover short-term liabilities with short-term assets, has remained below 1 throughout the period, signaling potential liquidity concerns. It rose modestly from 0.66 in 2020 to 0.74 in 2021, dropped to a low of 0.60 in 2022, and experienced slight improvement thereafter to 0.62 in 2023 and 0.68 in 2024. Despite the marginal recovery towards the end, the ratio consistently staying under 1 suggests that current liabilities surpass current assets, indicating a potential liquidity risk.

Total quick assets

The total quick assets exhibited moderate fluctuations over the examined period. Initially, there was a slight increase from 6,573 million USD in 2020 to 6,734 million USD in 2021. Subsequently, a noticeable decline occurred in 2022, dropping to 5,830 million USD. In the following years, the values showed a partial recovery, rising to 6,322 million USD in 2023, before a minor decrease to 6,162 million USD in 2024.

Current liabilities

Current liabilities displayed a general upward trend throughout the period. Starting at 15,159 million USD in 2020, liabilities decreased somewhat to 14,008 million USD in 2021. However, from 2022 onwards, there was a consistent increase each year, reaching 16,731 million USD in 2022, then 19,013 million USD in 2023, and finally 19,549 million USD in 2024.

Quick ratio

The quick ratio showed a declining trajectory over the five years. Initially, it improved slightly from 0.43 in 2020 to 0.48 in 2021, indicating a marginally better liquidity position. Nonetheless, it decreased significantly afterward, falling to 0.35 in 2022 and continuing to drop to 0.33 in 2023, followed by a further slight decrease to 0.32 in 2024. This indicates a decreasing capacity to cover current liabilities with quick assets.

Overall analysis

The trends suggest a weakening liquidity position over the analyzed years. While quick assets have seen some fluctuations, the steady rise in current liabilities has outpaced these assets, which is reflected in the declining quick ratio. The reduction in the quick ratio points to potentially increased short-term financial risk, indicating that the company may be less able to meet its short-term obligations promptly with its most liquid assets.

The financial data reveals several notable trends over the five-year period ending December 31, 2024. Total cash assets have shown a consistent decline, dropping from $3,619 million in 2020 to $1,351 million in 2024. This represents a reduction of approximately 63%, indicating a significant decrease in liquid assets over the period.

Current liabilities present a contrasting pattern, initially decreasing from $15,159 million in 2020 to $14,008 million in 2021, but thereafter increasing steadily to reach $19,549 million by 2024. This upward trend in current liabilities suggests growing short-term obligations of the company.

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has deteriorated consistently. Starting at 0.24 in 2020, it remained relatively stable in 2021 at 0.25 but then declined sharply to 0.07 by 2024. This decline correlates with the reduction in total cash assets combined with the increase in current liabilities, reflecting decreasing liquidity coverage.

Total cash assets

Declined significantly, indicating reduced liquidity reserves.

Current liabilities

Increased overall after an initial decrease, implying higher short-term obligations.

Cash ratio

Fell from a moderate level to very low, suggesting diminished capacity to meet short-term debts using cash.

Overall, the data suggests a weakening liquidity position over the time frame analyzed, with diminishing cash resources and rising liabilities leading to a lower ability to cover short-term debts with readily available cash. This trend may warrant further investigation into the company’s working capital management and funding strategies.