Mondelēz International Inc. (NASDAQ:MDLZ)

The solvency ratios presented demonstrate a generally stable financial position with some fluctuations over the observed period. Throughout the analyzed timeframe, the company maintains a moderate level of debt relative to equity, capital, and assets. A slight increasing trend in several ratios is observed towards the end of the period, warranting further investigation.

Debt to Equity

The debt to equity ratio exhibits a moderate increase from 0.70 in March 2022 to 0.82 in December 2025. There is initial increase to 0.85 in December 2022, followed by a decline to 0.66 in December 2024, before rising again. This suggests periods of increased reliance on debt financing followed by deleveraging, and then renewed borrowing. The inclusion of operating lease liability results in a slightly higher ratio, following a similar pattern, peaking at 0.87 in December 2022 and reaching 0.84 in December 2025.

Debt to Capital

The debt to capital ratio mirrors the trend observed in the debt to equity ratio, increasing from 0.41 in March 2022 to 0.46 in December 2025 (including operating lease liability). The ratio, with and without operating lease liability, remains relatively consistent throughout the period, fluctuating within a narrow range. A peak is observed in December 2022 at 0.47 (including operating lease liability) and 0.46 (excluding operating lease liability).

Debt to Assets

The debt to assets ratio demonstrates a similar pattern, increasing from 0.29 in March 2022 to 0.31 in December 2025 (including operating lease liability). The lowest point in the period is observed in December 2024 at 0.27 (including operating lease liability). This indicates a gradual increase in the proportion of assets financed by debt. The ratio including operating lease liability consistently remains slightly higher than the ratio excluding it.

Financial Leverage

Financial leverage, as measured by the ratio, generally increased over the period, moving from 2.41 in March 2022 to 2.77 in December 2025. There is a peak at 2.65 in December 2022, followed by a slight decrease, and then a consistent upward trend. This suggests an increasing use of debt to amplify returns on equity, which also increases financial risk.

Overall, the company’s solvency ratios suggest a moderate and generally stable financial structure. The recent upward trend in debt ratios towards the end of the period warrants monitoring to assess whether it indicates a shift in financing strategy or increased financial risk.

The debt-to-equity ratio for the analyzed period demonstrates fluctuations, generally trending upwards before stabilizing and then increasing slightly towards the end of the observed timeframe. Initial values indicate a ratio of 0.70 in the first two quarters, followed by a rise to 0.85 by the end of 2022. Subsequent quarters in 2023 show a decrease, reaching a low of 0.69, before exhibiting a gradual increase again, culminating in a ratio of 0.82 in the final quarter of 2025.

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

The debt-to-equity ratio experienced a consistent increase during this period, moving from 0.70 to 0.85. This suggests a growing reliance on debt financing relative to equity during this timeframe. The increase could be attributed to increased borrowing for operational needs, acquisitions, or shareholder returns.

Stabilization and Decline (Mar 31, 2023 – Sep 30, 2023)

From the beginning of 2023 through the third quarter, the ratio decreased from 0.79 to 0.70. This indicates a period where equity growth outpaced debt accumulation, or debt was actively reduced. This could be due to increased profitability leading to retained earnings, or deliberate debt repayment strategies.

Subsequent Increase (Dec 31, 2023 – Dec 31, 2025)

The ratio began to rise again in the final quarter of 2023, reaching 0.82 by the end of 2025. This renewed increase suggests a return to greater reliance on debt financing. The increase is relatively moderate compared to the initial rise, but still indicates a shift in the capital structure. The final two quarters show minimal change, suggesting a potential stabilization at this higher level.

Overall Trend

The overall trend reveals a cyclical pattern. An initial increase in leverage, followed by a period of deleveraging, and then a subsequent increase in leverage. The ratio remained within a range of 0.66 to 0.85 throughout the analyzed period, indicating a moderate level of financial risk. The final value of 0.82 suggests a slightly higher degree of financial leverage compared to the beginning of the period.

The debt to equity ratio, inclusive of operating lease liabilities, for the analyzed period demonstrates fluctuations while generally remaining within a relatively constrained range. An initial increase is observed, followed by a period of decline, and then a subsequent rise towards the end of the observed timeframe.

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

The ratio begins at 0.72 and steadily increases, reaching 0.87 by the end of December 2022. This indicates a growing reliance on debt financing relative to equity during this period. The increase in total debt, as evidenced by the underlying figures, appears to be the primary driver of this trend.

Subsequent Decline (Mar 31, 2023 – Dec 31, 2023)

From March 2023 through December 2023, a downward trend is apparent, with the ratio decreasing from 0.80 to 0.70. This suggests a reduction in the proportion of debt relative to equity, potentially through debt repayment or an increase in shareholders’ equity. Both total debt and total equity experienced changes during this period, contributing to the observed decline.

Stabilization and Increase (Mar 31, 2024 – Dec 31, 2025)

Following the decline, the ratio stabilizes around 0.73 for the first half of 2024, before decreasing to 0.68 by the end of the year. However, the ratio then begins to increase again, reaching 0.84 by December 2025. This final increase suggests a renewed reliance on debt financing, potentially driven by investment activities or strategic acquisitions. The increase in total debt is more pronounced than the changes in equity during this phase.

Overall, the debt to equity ratio exhibits cyclical behavior over the analyzed period. While the ratio remains below 1.0 throughout, indicating that the company’s assets exceed its liabilities, the fluctuations warrant continued monitoring to assess the long-term implications for financial risk and stability.

Shareholders’ Equity Impact

Shareholders’ equity generally remains stable, with a noticeable decrease observed towards the end of the period. This decrease in equity, coupled with the increasing debt levels in late 2024 and 2025, contributes to the upward trend in the debt to equity ratio.

Total Debt Impact

Total debt demonstrates variability throughout the period, with peaks in late 2022 and again in mid-2025. These increases in debt levels directly influence the debt to equity ratio, contributing to the observed fluctuations.

The debt to capital ratio for the analyzed period demonstrates a generally stable trend with moderate fluctuations. Initially, the ratio remained consistent at 0.41 for the first two quarters of the observed timeframe. A subsequent increase is noted, peaking at 0.46 in the fourth quarter of 2022, before experiencing a slight decline.

Overall Trend

From the first quarter of 2022 through the fourth quarter of 2023, the ratio fluctuated between 0.41 and 0.45. The latter half of the period, beginning in the first quarter of 2024, shows a slight downward trend, reaching a low of 0.40 in the fourth quarter of 2024, before stabilizing and increasing slightly to 0.45 by the end of the observed period.

Peak and Trough

The highest value for the debt to capital ratio was recorded at 0.46 in December 2022. The lowest value was 0.40, observed in December 2024. These represent the high and low points within the analyzed timeframe.

Recent Performance

The most recent quarters show a slight increase in the ratio. From March 2024 (0.40) to June 2025 (0.45), the ratio has increased by 0.05. This suggests a potential shift towards increased leverage, although the change is relatively modest.

Throughout the period, the debt to capital ratio remained within a relatively narrow range, indicating a consistent approach to financing. The observed fluctuations may be attributable to changes in debt levels, capital structure, or both. The recent increase warrants continued monitoring to assess its potential impact on the company’s financial risk profile.

The Debt to Capital ratio, including operating lease liabilities, for the analyzed period demonstrates a generally stable pattern with some fluctuation. Initially, the ratio remained consistent at 0.42 for the first two quarters of 2022. A gradual increase was then observed, peaking at 0.47 in the final quarter of 2022.

Overall Trend

From the end of 2022 through 2023, the ratio exhibited a declining trend, decreasing from 0.47 to 0.41 by the end of 2023. This suggests a reduction in the proportion of debt financing relative to total capital. The first half of 2024 saw the ratio stabilize around 0.42. A slight increase is then observed in the latter half of 2024 and into the first half of 2025, reaching 0.46 by June 30, 2025.

The increase in the ratio during late 2022 could be attributed to increased debt levels, potentially related to financing activities or acquisitions. The subsequent decrease throughout 2023 indicates a successful deleveraging strategy or an increase in equity capital. The recent stabilization and slight increase in 2024 and the first half of 2025 suggest a potential shift in capital structure or renewed borrowing activity.

Quarterly Fluctuations

The most significant quarterly change occurred between September 30, 2022 (0.45) and December 31, 2022 (0.47), representing a 4.4% increase. Conversely, the largest quarterly decrease was observed between December 31, 2023 (0.41) and March 31, 2024 (0.44), a 7.3% increase, indicating a reversal of the prior trend. These fluctuations warrant further investigation into the underlying financial activities during those specific periods.

The ratio consistently remained below 0.5 throughout the analyzed period, suggesting a moderate level of financial leverage. However, the recent upward trend should be monitored to assess whether it indicates a potential increase in financial risk.

Long-Term Perspective

Comparing the beginning (March 31, 2022 - 0.42) and end (June 30, 2025 - 0.46) of the analyzed period, the Debt to Capital ratio has increased slightly. While not a dramatic shift, this incremental change suggests a subtle increase in reliance on debt financing over time.

The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, with some fluctuations. Initially, the ratio remained stable before exhibiting a slight decline towards the end of the observed timeframe. This suggests a gradual improvement in the company’s solvency position over the period.

Initial Stability (Mar 31, 2022 – Jun 30, 2022)

The debt-to-assets ratio began at 0.29 in March 2022 and remained consistent through June 2022. This indicates a stable capital structure during this initial period, with debt financing representing approximately 29% of total assets.

Increase and Peak (Jul 31, 2022 – Dec 31, 2022)

From September 2022 to December 2022, the ratio increased from 0.32 to 0.32, representing a slight increase in leverage. Total debt increased during this period, while asset growth was not sufficient to offset it.

Downward Trend (Jan 31, 2023 – Dec 31, 2023)

A consistent downward trend was observed from March 2023 to December 2023, with the ratio decreasing from 0.31 to 0.27. This decline suggests a reduction in the proportion of debt financing relative to total assets, potentially through debt repayment or asset growth.

Fluctuation and Stabilization (Jan 31, 2024 – Jun 30, 2025)

The ratio fluctuated between 0.25 and 0.30 from March 2024 to June 2025. While there were some increases, the ratio generally remained within a lower range compared to the earlier periods. The ratio ended at 0.30 in June 2025, indicating a stabilization of the capital structure at a relatively lower level of debt compared to assets.

Overall, the observed trend suggests a strengthening solvency position. The company appears to be managing its debt levels effectively, reducing its reliance on debt financing relative to its asset base. However, the fluctuations in the latter part of the period warrant continued monitoring to ensure sustained financial stability.

The debt to assets ratio, including operating lease liabilities, for the analyzed period demonstrates a generally decreasing trend, although with some fluctuations. Initially, the ratio remained stable before exhibiting a decline towards the end of the observed timeframe.

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

The ratio began at 0.30 in March 2022 and remained at that level through June 2022. A slight increase was then observed, reaching 0.33 by December 2022. This indicates a modest increase in leverage during this period.

Subsequent Decline (Mar 31, 2023 – Dec 31, 2023)

From March 2023 through December 2023, a consistent downward trend is apparent. The ratio decreased from 0.31 to 0.28, suggesting a reduction in the proportion of assets financed by debt. This decline continued, albeit at a slower pace.

Fluctuation and Stabilization (Mar 31, 2024 – Dec 31, 2025)

The ratio experienced a slight increase to 0.28 in March 2024, followed by a more substantial decrease to 0.27 by December 2024. It then increased again, reaching 0.31 by December 2025. This suggests some volatility in the company’s capital structure during this period, but ultimately stabilized at a level comparable to the beginning of the analyzed timeframe. The lowest point was observed in December 2024 at 0.27.

Overall Trend

Despite the fluctuations, the overall trend indicates a reduction in the reliance on debt financing relative to total assets over the analyzed period. The ratio moved from 0.30 at the beginning to 0.31 at the end, with a notable dip in between. This suggests a strengthening of the company’s solvency position, although the recent stabilization warrants continued monitoring.

Financial leverage, as indicated by the provided figures, exhibits a generally increasing trend over the analyzed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occur, the ratio consistently remains above 2.40, suggesting a significant reliance on debt financing relative to equity.

Overall Trend

The financial leverage ratio begins at 2.41 in March 2022 and generally increases, reaching 2.77 by December 2025. This indicates a growing proportion of debt used to finance assets over time. There are quarterly variations, but the overall direction is upward.

Short-Term Fluctuations (2022-2023)

From March 2022 to December 2022, the ratio increased from 2.41 to 2.65. A slight decrease is then observed in the first half of 2023, falling to 2.51 in June 2023. However, the ratio stabilizes and remains relatively consistent through the remainder of 2023, fluctuating between 2.48 and 2.58.

Accelerated Increase (2024-2025)

A more pronounced increase is evident from March 2024 onwards. The ratio rises from 2.73 in March 2024 to 2.77 in December 2025. This suggests a more aggressive adoption of debt financing during this period. The highest value recorded within the analyzed timeframe is 2.77.

Equity Impact

While total assets fluctuate, the shareholders’ equity demonstrates a more stable, albeit slightly decreasing, pattern. The combination of relatively stable equity and increasing assets contributes to the observed rise in financial leverage. The decrease in equity from 28,161 in March 2022 to 25,838 in December 2025 further exacerbates the increase in the leverage ratio.

In conclusion, the financial leverage ratio demonstrates a clear upward trajectory, indicating an increasing reliance on debt financing. The rate of increase accelerates in the latter part of the analyzed period, coupled with a slight decline in shareholders’ equity, suggesting a potential shift in the company’s capital structure.