Mondelēz International Inc. (NASDAQ:MDLZ)

The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the ratios demonstrate a degree of instability, with no consistently strong upward or downward trajectory across the entire timeframe.

Current Ratio

The current ratio began at 0.68 in March 2022 and experienced minor variations through December 2022, concluding at 0.60. A slight recovery was noted in the first half of 2023, peaking at 0.68 in March 2023 before declining to 0.62 by December 2023. A notable increase to 0.77 occurred in March 2024, followed by a return to levels around 0.63-0.68 through December 2024. The ratio then decreased to 0.59 by December 2025, suggesting a potential weakening in short-term asset coverage of current liabilities.

Quick Ratio

The quick ratio consistently remained below the current ratio throughout the period, indicating a reliance on inventory to meet current obligations. Starting at 0.35 in March 2022, it generally trended downwards, reaching a low of 0.25 in June 2023. A modest recovery to 0.29 was observed by December 2023, but this was followed by a decline to 0.20 in March 2024. Fluctuations continued through 2024 and into 2025, ending at 0.28 in December 2025. The overall trend suggests a constrained ability to meet short-term liabilities with highly liquid assets.

Cash Ratio

The cash ratio, representing the most conservative measure of liquidity, demonstrated a consistent downward trend from 0.14 in March 2022 to a low of 0.08 in June 2023. A slight recovery occurred in the latter half of 2023, reaching 0.10 by December 2023. However, the ratio continued to decline in 2024, reaching a low of 0.05 in March 2024. A modest increase to 0.10 was observed in December 2025, but remains at a relatively low level, indicating limited immediate capacity to cover current liabilities with cash and cash equivalents.

Overall Trend

Across all three ratios, a general pattern of instability is apparent. While some quarters show minor improvements, the overall trend suggests a potential weakening in the company’s short-term liquidity position, particularly as observed in the final period analyzed. The decreasing trend in the cash ratio is particularly noteworthy, as it highlights a diminishing ability to meet immediate obligations without relying on receivables or inventory.

The current ratio exhibits fluctuations over the observed period, generally indicating a consistent, though sometimes strained, ability to cover short-term liabilities with short-term assets. A review of the quarterly figures reveals periods of relative stability interspersed with notable shifts.

Overall Trend

From March 31, 2022, through December 31, 2023, the current ratio remained relatively stable, fluctuating between 0.60 and 0.69. This suggests a consistent, albeit limited, capacity to meet short-term obligations. A more significant increase to 0.77 was observed in March 31, 2024, followed by a decline back to the 0.60-0.69 range through December 31, 2025.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The ratio began at 0.68 in March 2022 and remained at the same level in June 2022. A slight increase to 0.69 was noted in September 2022, before decreasing to 0.60 by the end of the year. This initial decline could indicate a temporary strain on liquidity as current liabilities increased more rapidly than current assets.

Subsequent Stability and Increase (Mar 31, 2023 – Mar 31, 2024)

The first quarter of 2023 saw a rebound to 0.68, followed by a slight decrease to 0.65 and 0.61 in the subsequent quarters. The ratio remained relatively stable at 0.62 in December 2023. A substantial increase to 0.77 was then observed in March 2024, representing the highest point in the observed period. This improvement suggests a strengthening of the short-term financial position.

Recent Performance (Jun 30, 2024 – Dec 31, 2025)

Following the peak in March 2024, the current ratio decreased to 0.68 in June 2024, then continued a downward trend, reaching 0.59 by December 2025. This recent decline warrants attention, as it indicates a potential weakening in the company’s ability to cover its immediate liabilities. The ratio consistently remained below 0.70 during this period.

Magnitude of the Ratio

Throughout the entire period, the current ratio remained below 1.0. A ratio below 1.0 generally suggests that the company has more current liabilities than current assets, potentially indicating liquidity concerns. While not necessarily indicative of immediate financial distress, it suggests a reliance on efficient working capital management and access to additional funding sources to meet short-term obligations.

The quick ratio for the analyzed period demonstrates fluctuations, generally indicating a constrained ability to meet short-term obligations with the most liquid assets. An initial period of relative stability is followed by a decline, then a period of modest recovery, and finally a renewed downward trend before a slight uptick at the end of the observed timeframe.

Overall Trend

The quick ratio generally decreased from March 31, 2022, to June 30, 2023, before showing some recovery. However, it then declined again through March 31, 2024, before stabilizing and showing a slight increase through December 31, 2025. The ratio consistently remains below 0.5 throughout the entire period, suggesting limited immediate liquidity.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The quick ratio began at 0.35 and experienced a gradual decline to 0.30. This suggests a weakening of the company’s ability to cover its current liabilities with quick assets during this timeframe. Total quick assets remained relatively stable, while current liabilities increased, contributing to the ratio’s decrease.

Decline and Initial Recovery (Mar 31, 2023 – Sep 30, 2023)

The ratio continued its downward trend, reaching a low of 0.25 in March 31, 2023. A modest recovery followed, with the ratio increasing to 0.27 by September 30, 2023. This recovery was driven by an increase in quick assets, while current liabilities remained high.

Subsequent Decline and Stabilization (Dec 31, 2023 – Dec 31, 2025)

The quick ratio experienced a significant decline to 0.21 by December 31, 2023, coinciding with a substantial increase in current liabilities. It then stabilized around 0.25-0.28 for the subsequent periods, with a slight increase to 0.28 by December 31, 2025. While the ratio did not return to its initial levels, the stabilization suggests a potential leveling off of the liquidity challenges.

Asset and Liability Dynamics

Throughout the period, current liabilities consistently exceeded total quick assets. The fluctuations in the quick ratio are largely attributable to the relative changes in these two components. Increases in current liabilities generally led to decreases in the quick ratio, while increases in quick assets had the opposite effect. The most significant increase in current liabilities occurred between December 31, 2022, and March 31, 2023, and again between September 30, 2023, and March 31, 2024.

In conclusion, the quick ratio indicates a consistent, though fluctuating, liquidity position that warrants continued monitoring. The observed trends suggest the company operates with a limited cushion of highly liquid assets to cover its immediate liabilities.

The cash ratio, representing the proportion of current liabilities covered by total cash assets, exhibited fluctuations over the analyzed period spanning from March 31, 2022, to December 31, 2025. An initial period of relative stability was followed by a declining trend and then a partial recovery.

Initial Stability (Q1 2022 - Q4 2022)

From March 31, 2022, through December 31, 2022, the cash ratio remained relatively consistent, fluctuating between 0.11 and 0.15. This suggests a stable, albeit modest, ability to cover short-term obligations with immediately available cash during this timeframe. A slight decrease was observed towards the end of this period.

Declining Trend (Q1 2023 - Q3 2023)

The cash ratio experienced a noticeable downward trend throughout the first three quarters of 2023, decreasing from 0.10 in March to 0.08 in June and further to 0.09 in September. This indicates a weakening in the company’s immediate liquidity position as current liabilities appeared to grow at a faster rate than cash assets.

Partial Recovery and Subsequent Fluctuations (Q4 2023 - Q4 2025)

A slight increase to 0.10 was observed in December 2023, but the ratio then declined to 0.05 in March 2024, representing the lowest point in the observed period. Subsequent quarters showed some volatility, with the ratio reaching 0.07 by September 2024 and remaining at 0.07 by December 2024. A further increase to 0.08 was seen in March 2025, followed by a decrease to 0.06 in June 2025, and a final recovery to 0.10 in December 2025. This suggests ongoing challenges in maintaining a strong immediate liquidity position, with periods of improvement followed by setbacks.

Overall Trend

While the cash ratio did not demonstrate a consistently strong or weak trend, the overall pattern suggests a gradual erosion of immediate liquidity, particularly evident in 2023 and early 2024. The recovery observed in late 2024 and 2025, while positive, did not return the ratio to the levels seen in the earlier part of the analyzed period.

The observed fluctuations in the cash ratio warrant continued monitoring to assess the company’s ability to meet its short-term obligations and to identify any potential liquidity risks.