Mondelēz International Inc. (NASDAQ:MDLZ)

Current Ratio

The current ratio exhibited fluctuations over the observed periods, starting at 0.53 in March 2020 and showing an increase to a peak of 0.77 in June 2024. The ratio generally remained below 1 throughout the timeline, indicating that current liabilities consistently exceeded current assets. Notable increases occurred in September 2020 and again in mid-2024, suggesting periods of improved short-term liquidity. However, several declines were observed, such as between June 2023 and December 2023, where the ratio dropped from 0.65 to 0.62, signifying potential variability in liquidity management.

Quick Ratio

The quick ratio followed a pattern of moderate volatility, ranging from a low of 0.20 in September 2024 to a high of 0.43 in September 2021. The metric generally remained lower than the current ratio, as expected due to exclusion of inventory from current assets. Initial increases were observed during 2020, indicating improved ability to meet short-term obligations with liquid assets. Post-2021, the quick ratio displayed a downward trend, particularly between June 2023 and September 2024, before a slight recovery in the final reported periods. This suggests a cautious approach towards liquid asset management or an increase in less liquid current assets.

Cash Ratio

The cash ratio remained consistently low, fluctuating between 0.05 and 0.25 across all periods. The highest values were recorded in late 2020 and 2021, reaching up to 0.25, indicating peak available cash relative to current liabilities. However, from 2022 onward, the ratio showed a general decline with minor variations, stabilizing around 0.07 in early 2025. This persistent low cash ratio denotes limited cash reserves compared to current liabilities, reflecting a conservative cash holding strategy or reliance on other current assets to meet short-term obligations.

The analysis of the quarterly financial data reveals the following trends and observations regarding current assets, current liabilities, and the current ratio over the periods from March 31, 2020, to March 31, 2025.

Current Assets

Current assets exhibit notable fluctuations over the observed timeframe. Starting at approximately 9.1 billion US dollars in March 2020, the value dropped to around 8.0 billion by June 2020, followed by an increase reaching over 10.4 billion by September 2021. Thereafter, current assets generally remained in a range between 9.6 and 11.7 billion until the end of 2023. A significant increase is observed in the first quarter of 2024, jumping to approximately 19.4 billion, then declining again to about 13.2 billion by September 2024 and stabilizing around 12.7 billion by March 2025.

Current Liabilities

Current liabilities show variability but generally maintain higher values than current assets throughout the periods, indicating a consistent working capital deficit. The liabilities started at approximately 17.0 billion US dollars in March 2020 and experienced a decline to about 12.7 billion by September 2020. Following this, liabilities rose and fluctuated between approximately 14.0 and 19.0 billion through 2021 to the end of 2023. Similar to current assets, liabilities experienced a sharp rise in early 2024 reaching nearly 25.3 billion in June 2024 before receding slightly but remaining elevated near 21.0 billion by March 2025.

Current Ratio

The current ratio, which measures liquidity by comparing current assets to current liabilities, consistently remained below 1.0 across all quarters, indicating that current liabilities exceeded current assets throughout the entire period. Initially, the ratio hovered around 0.53-0.74 from 2020 through 2021, showing some improvement with peaks near 0.74 in late 2020 and 2021. Between 2022 and 2023, the current ratio fluctuated between approximately 0.60 and 0.68, suggesting persistent liquidity constraints. A notable improvement in liquidity appears in the first half of 2024, with the ratio increasing to about 0.77 in March 2024, followed by a gradual decrease back to around 0.61 by early 2025.

Overall, the data indicate that although current assets and current liabilities both experienced volatility, liabilities consistently exceeded assets, constraining liquidity as reflected in the subunit current ratios. The pronounced spikes in current assets and liabilities during early 2024 suggest possible extraordinary activities or changes in working capital management. Despite occasional improvements, the current ratio remains below the generally accepted threshold of 1.0, highlighting ongoing challenges in covering short-term obligations solely through current assets.

Total quick assets

The total quick assets show a fluctuating pattern over the reported periods. There is an increase from March 2020 to December 2020, rising from 4,553 million US dollars to 5,916 million US dollars. Following this peak, the values decline in the first half of 2021 but again reach a similar elevated level around the end of 2021 (5,883 million US dollars). From early 2022 through mid-2024, quick assets display moderate volatility, with values mostly ranging between approximately 4,300 and 5,400 million US dollars. Towards the very end of the period, quick assets increase somewhat, reaching 5,879 million US dollars by March 2025.

Current liabilities

Current liabilities, in contrast, exhibit a general upward trend over the timeframe analyzed. Starting at 17,004 million US dollars in March 2020, liabilities decrease somewhat during the middle quarters of 2020 but then resume a rising trajectory from December 2020 onward, peaking sharply at 25,288 million US dollars in June 2024. After this peak, current liabilities decrease gradually but remain elevated relative to the early periods, ending at 21,003 million US dollars in March 2025.

Quick ratio

The quick ratio indicates liquidity trends relative to current liabilities and shows an overall downward drift over the years. It starts at 0.27 in March 2020, improves during late 2020 peaking at 0.43 in September 2021, and then declines consistently in subsequent periods. By mid-2024, the ratio reaches a low of 0.20, indicating reduced liquidity relative to liabilities. Slight recovery is seen towards the end of the data set, rising to 0.28 in March 2025, but remains below earlier period highs.

Overall analysis

While total quick assets fluctuate, the steady increase in current liabilities results in a generally declining quick ratio, which suggests that the company’s liquid assets are not growing proportionally to its short-term obligations. This trend could indicate potential short-term liquidity challenges, warranting further attention to managing liabilities or bolstering liquid asset reserves. The partial recovery in the quick ratio towards the end signals some improvement, but the levels remain lower than earlier years, implying only modest gains in liquidity position.

The financial data over the quarters reveals distinct patterns and fluctuations across the key metrics analyzed.

Total cash assets

The total cash assets exhibit a cyclical pattern with notable increases and decreases over the observed periods. Initially, cash holdings rose sharply from approximately $1,925 million in the first quarter of 2020 to a peak around $3,619 million by the end of 2020. Following this peak, a decline ensued into 2021, with values dropping near the $1,900 million mark during certain quarters. Another rise occurred towards the third quarter of 2021, reaching above $3,400 million, before again declining. From 2022 onward, there is a general downward tendency with minor recoveries but overall lower cash assets compared to the initial peak at the end of 2020. By early 2025, cash assets approximate $1,561 million, indicating a reduction from earlier highs.

Current liabilities

Current liabilities show substantial volatility but with a generally upward trend over the years. Starting from $17,004 million in the first quarter of 2020, liabilities decreased to a low around $12,685 million by the third quarter of 2020. This decline was short-lived as the values rose again, oscillating primarily between $14,000 and $18,000 million throughout 2021 and 2022. A marked increase is observed in mid-2024, where liabilities abruptly jumped to approximately $25,288 million, the highest point in the dataset. Despite some fluctuations after this peak, liabilities remain elevated, ending above $21,000 million by early 2025.

Cash ratio

The cash ratio demonstrates a declining trend over the observed timeline. Initially stable around 0.11 during early 2020, the ratio increased temporarily to approximately 0.24 by the end of 2020, reflecting strong liquidity relative to current liabilities during that period. However, from 2021 onwards, the ratio declines progressively, falling to nearly 0.05 by mid-2024. Minor improvements occur subsequently, but the ratio stabilizes around a low 0.07 level towards early 2025. This decline suggests a reduction in liquidity relative to short-term obligations over time.

Overall, the data indicate that while cash assets have fluctuated with significant peaks toward the end of 2020 and 2021, they have retreated thereafter. Concurrently, current liabilities have escalated notably, particularly in the later periods, exerting pressure on liquidity. The shrinking cash ratio corroborates this observation, signaling reduced short-term liquidity covering current liabilities. These trends highlight increasing financial obligations relative to cash reserves which could affect the company's short-term financial flexibility if the pattern persists.