Mondelēz International Inc. (NASDAQ:MDLZ)

The solvency profile of the organization exhibits a cyclical trend characterized by an initial increase in leverage through late 2022, a period of deleveraging throughout 2023 and early 2024, and a renewed upward trajectory in debt ratios from mid-2024 through March 2026.

Debt to Equity Ratios

A fluctuating pattern is observed in the debt to equity ratios. The ratio increased from 0.70 in March 2022 to a peak of 0.85 by December 2022. This was followed by a consistent decline, reaching a period low of 0.66 in December 2023. However, starting in March 2024, the ratio trended upward again, stabilizing at 0.82 by March 2026. The inclusion of operating lease liabilities consistently adds a marginal increase of approximately 0.02 to 0.03 to these figures, suggesting that lease obligations represent a relatively small portion of the total capital structure.

Debt to Capital Ratios

Debt to capital remains relatively stable compared to equity-based ratios, fluctuating within a narrow range between 0.40 and 0.46. A peak occurred in December 2022 at 0.46, followed by a dip to 0.40 by March 2024. The ratio subsequently climbed and remained steady at 0.45 through the final quarters of the analyzed period. The impact of operating lease liabilities on this metric is minimal, generally shifting the ratio by only 0.01.

Debt to Assets Ratios

The debt to assets ratio mirrors the broader leverage trends, peaking at 0.32 in late 2022 and reaching a minimum of 0.25 in March 2024. By March 2026, the ratio returned to 0.30. This indicates that the organization maintains a consistent approach to asset financing, with debt typically funding between 25% and 32% of total assets.

Financial Leverage

Financial leverage shows a general increase over the long term. After an initial peak of 2.65 in December 2022 and a subsequent correction to 2.48 in September 2023, the leverage ratio entered a sustained growth phase. It rose from 2.54 in December 2023 to a peak of 2.77 in December 2025, ending at 2.76 in March 2026. This trend indicates an increasing reliance on debt to amplify equity returns over the latter half of the analyzed period.

The solvency profile of Mondelēz International Inc. is characterized by cyclical fluctuations in leverage and a relatively stable equity base, resulting in a debt-to-equity ratio that oscillates between 0.66 and 0.85 over the analyzed period.

Total Debt Dynamics

Total debt exhibited a significant increase during 2022, peaking at 22,933 million USD by December 31, 2022. This was followed by a period of deleveraging through 2023, reaching a minimum of 17,749 million USD by December 31, 2023. From 2024 through early 2026, debt levels trended upward again, stabilizing near 21,024 million USD by March 31, 2026.

Shareholders' Equity Stability

Total shareholders' equity remained comparatively stable, fluctuating within a range of 25,750 million USD to 28,647 million USD. A peak in equity was observed in June 2023, after which a gradual decline occurred, with equity levels settling around 25,750 million USD by the end of the observation period.

Debt to Equity Ratio Interpretation

The debt-to-equity ratio mirrored the movements of total debt. The ratio rose from 0.70 in early 2022 to a peak of 0.85 in December 2022. A subsequent downward trend brought the ratio to its lowest point of 0.66 by December 2023. In the final stages of the period, the ratio experienced a steady ascent, ultimately stabilizing at 0.82 between December 2025 and March 2026, indicating a moderate increase in financial leverage relative to equity.

The solvency profile exhibits a cyclical pattern of leverage expansion and contraction over the analyzed period. An initial increase in the debt-to-equity ratio is observed through 2022, followed by a deleveraging trend through 2024, and a subsequent rise in leverage toward the end of the period.

Debt Dynamics

Total debt, inclusive of operating lease liabilities, demonstrated significant volatility. After peaking at 23,447 million USD in December 2022, debt levels followed a general downward trajectory, reaching a minimum of 18,372 million USD in December 2024. This was followed by a resurgence in borrowing, with debt climbing back to 21,622 million USD by March 2026.

Equity Trends

Shareholders' equity remained relatively stable but displayed a gradual long-term decline. While equity peaked at 28,647 million USD in June 2023, it trended downward to 25,750 million USD by March 2026. This gradual erosion of the equity base contributed to the increase in the leverage ratio during the latter part of the period.

Debt to Equity Ratio Analysis

The debt-to-equity ratio fluctuated between a low of 0.68 and a high of 0.87. The period between March 2023 and December 2024 was characterized by improved solvency, with the ratio declining from 0.80 to 0.68. However, starting in March 2025, a consistent upward trend occurred, with the ratio stabilizing at 0.84 by March 2026, indicating a shift toward a more leveraged capital structure.

The solvency profile exhibits a high degree of stability over the analyzed period, with the debt-to-capital ratio fluctuating within a narrow range between 0.40 and 0.46. This consistency indicates a disciplined approach to maintaining a balanced capital structure relative to total debt obligations.

Total Debt Dynamics

Total debt experienced an initial upward trend, reaching a peak of 22,933 million US$ in December 2022. This was followed by a general reduction phase, with debt levels descending to a period low of 17,749 million US$ in December 2024. In the subsequent quarters leading into March 2026, debt levels moderately increased and stabilized around 21,024 million US$.

Total Capital Trends

The total capital base remained relatively stable, oscillating between a peak of 50,430 million US$ in March 2023 and a low of 44,681 million US$ in December 2024. The capital structure showed a recovery trend throughout 2025, concluding at 46,774 million US$ by March 2026.

Debt to Capital Ratio Analysis

The debt-to-capital ratio peaked at 0.46 in December 2022, coinciding with the maximum observed total debt. A downward correction occurred shortly after, with the ratio hitting a floor of 0.40 in March 2023 and again in December 2024. From June 2025 through March 2026, the ratio settled into a consistent range of 0.44 to 0.45, suggesting a stabilized long-term leverage target.

The solvency profile demonstrates a fluctuating trend in leverage, characterized by an initial increase in debt throughout 2022, a subsequent period of deleveraging through 2024, and a gradual return to higher leverage levels throughout 2025 and into early 2026.

Total Debt Evolution

Total debt, including operating lease liabilities, exhibited significant volatility. After reaching a peak of 23,447 million US dollars in December 2022, a general downward trend occurred over the following two years, reaching a minimum of 18,372 million US dollars by December 2024. This contraction was followed by a reversal in 2025, where debt levels rose again to stabilize between 21,622 million and 21,933 million US dollars by March 2026.

Total Capital Trends

Total capital remained relatively stable relative to debt, fluctuating within a range of 45,304 million to 50,938 million US dollars. The lowest point of total capital coincided with the lowest point of total debt in December 2024, indicating a reduction in the total capital base during the deleveraging phase before recovering to 47,372 million US dollars by March 2026.

Debt to Capital Ratio Interpretation

The debt to capital ratio reflects these shifting financing dynamics. The ratio increased from 0.42 in March 2022 to a peak of 0.47 in December 2022. A period of improvement followed, with the ratio descending to a floor of 0.41, which was maintained periodically between December 2023 and December 2024. Starting in March 2025, the ratio trended upward again, reaching 0.46 by March 2026, suggesting an increased reliance on debt relative to the total capital structure in the final periods of the analysis.

The solvency profile of the organization over the analyzed period exhibits a cyclical pattern, with the debt-to-assets ratio fluctuating between a low of 0.25 and a peak of 0.32. The overall trend indicates a period of increasing leverage in 2022, followed by a systematic deleveraging phase through early 2024, and a subsequent return to moderate leverage levels by early 2026.

Debt-to-Assets Ratio Trends

A peak ratio of 0.32 was reached in the second half of 2022, coinciding with the highest recorded total debt levels. This was followed by a sustained decline, reaching a period low of 0.25 by March 31, 2024. From mid-2024 through March 31, 2026, the ratio gradually ascended and stabilized within the 0.26 to 0.30 range, suggesting a recalibration of the capital structure.

Total Debt Dynamics

Total debt showed significant volatility, increasing from 19,704 million USD in March 2022 to a peak of 22,933 million USD by December 2022. A downward trend ensued, with debt levels falling to a minimum of 17,749 million USD by December 2024. In the subsequent period, debt levels rose again, ending at 21,024 million USD by March 2026.

Asset Base Evolution

Total assets expanded from 67,994 million USD in March 2022 to a peak of 77,624 million USD in March 2024. Following this peak, assets contracted to 68,497 million USD by December 2024 before recovering and stabilizing around 71,122 million USD by the end of the observed period.

Correlation Analysis

The most significant improvement in solvency occurred between December 2022 and March 2024, where the simultaneous reduction in total debt and the expansion of the asset base drove the ratio down from 0.32 to 0.25. Conversely, the increase in the ratio observed between 2025 and 2026 is primarily attributed to a rise in total debt while the asset base remained relatively stagnant.

The solvency profile over the analyzed period demonstrates a moderate degree of stability, with the debt-to-assets ratio fluctuating within a narrow band between 0.25 and 0.33. The overall trend indicates a cyclical movement in leverage, characterized by a peak in late 2022, a period of deleveraging through 2023 and early 2024, and a subsequent return to baseline levels by the first quarter of 2026.

Debt-to-Assets Ratio Dynamics

The ratio reached its maximum of 0.33 in the second half of 2022, coinciding with a rise in total debt to 23.4 billion US dollars. A sustained downward trend followed, reaching a minimum of 0.25 in March 2024. This decline was driven by both a reduction in total debt and a significant increase in total assets, which peaked at 77.6 billion US dollars during the same quarter. From mid-2024 through March 2026, the ratio stabilized, gradually ascending back to 0.30.

Debt Load Trends

Total debt, including operating lease liabilities, exhibited volatility throughout the period. After peaking at 23.4 billion US dollars in December 2022, debt levels were systematically reduced to a low of 18.4 billion US dollars by December 2024. However, a renewed upward trajectory began in early 2025, with debt increasing and stabilizing in the range of 21.6 billion to 21.9 billion US dollars through the end of the observed period.

Asset Base Correlation

Total assets fluctuated between 66.0 billion US dollars in June 2022 and 77.6 billion US dollars in March 2024. The relationship between asset growth and the solvency ratio is most evident in the first quarter of 2024, where the asset peak contributed to the lowest observed leverage ratio. By the conclusion of the period, assets remained relatively constant at approximately 71.1 billion US dollars, mirroring the stabilization of the debt-to-assets ratio at 0.30.

The analysis of the financial leverage from March 31, 2022, to March 31, 2026, indicates a general upward trend in the company's reliance on debt relative to equity. Although the financial leverage ratio exhibited periodic volatility, the overall trajectory demonstrates an increase in the capital structure's gearing, moving from a low of 2.40 in June 2022 to a peak of 2.77 in December 2025.

Financial Leverage Ratio Trends

The leverage ratio maintained a range between 2.40 and 2.65 during the 2022 calendar year. A period of relative stabilization occurred throughout 2023, with the ratio fluctuating between 2.48 and 2.58. However, a significant increase is observed starting in March 2024, where the ratio reached 2.73, marking a shift toward higher financial leverage that persisted through the end of the analyzed period, concluding at 2.76 in March 2026.

Total Assets Dynamics

Total assets showed considerable fluctuation, peaking at 77,624 million USD in March 2024. Following this peak, a general contraction occurred, with assets declining to 68,497 million USD by December 2024 before stabilizing around the 71,000 million USD mark through early 2026. The volatility in asset values suggests periodic shifts in the balance sheet composition.

Shareholders' Equity Analysis

Shareholders' equity remained relatively stable between 26,641 million USD and 28,647 million USD from March 2022 through December 2023. A gradual decline is evident starting in 2024, with equity values dropping to 25,750 million USD by March 2026. This reduction in the equity base, coupled with the fluctuations in total assets, contributed to the observed increase in the financial leverage ratio.

Correlation and Solvency Implications

The rise in financial leverage is primarily driven by the contraction of shareholders' equity since 2024. The convergence of declining equity and the maintenance of asset levels above 71,000 million USD in the final quarters indicates a shift toward a more aggressive financing strategy or a reduction in retained earnings, resulting in a higher risk profile regarding long-term solvency.