Mondelēz International Inc. (NASDAQ:MDLZ)

The analysis of the financial ratios and periods reveals several notable trends in the operational efficiency metrics over the examined quarters.

Inventory Turnover

Inventory turnover fluctuated moderately, moving within a range of approximately 5.18 to 6.45 times. A peak was observed around March 2022 (6.45) with a generally gradual decline thereafter until reaching lower values around mid-2024 (5.18). These variations suggest changes in inventory management efficiency, with a somewhat reduced turnover rate in later periods indicating slower inventory movement.

Receivables Turnover

This metric displayed significant variability across quarters, with values oscillating between 8.44 and 12.51 times. The highest turnover occurred in September 2020 (12.51), decreasing substantially in subsequent quarters, with a trend toward lower receivables turnover in most recent periods, particularly in the final quarter reported (8.44). This trend may reflect lengthening collection periods or credit extension to customers.

Payables Turnover

Payables turnover remained relatively stable but with a slight downward trend over time, ranging from about 2.35 to 2.88 times. The highest values occurred in December 2021 and December 2023 (2.88), while lower turnover was noted closer to the end of the data series (around 2.35-2.47). The moderate decline suggests a tendency to extend payment periods to suppliers in recent quarters.

Average Inventory Processing Period

This indicator of inventory holding time showed fluctuations between 57 and 70 days, with a general pattern of increasing days throughout the timeline. Early periods exhibited lower days (around 57-60), whereas later quarters saw an extension up to 70 days, indicating slower inventory processing or holding.

Average Receivable Collection Period

The collection period demonstrated variability, increasing from around 29-32 days in earlier quarters to peaks of 40-43 days in later periods. This rise corresponds with the declining receivables turnover and suggests longer durations for accounts receivable collection.

Operating Cycle

The operating cycle, which sums inventory processing and receivables collection periods, ranged from 87 to 108 days. There was an upward trend over the quarters, reflecting lengthening combined operational periods, which can indicate reduced operational efficiency in asset conversion.

Average Payables Payment Period

Conversely, the average payables payment period has generally increased, varying between 127 and 155 days, with noticeable peaks around mid-2024. This suggests the company is extending the time taken to pay suppliers, potentially improving cash flow management at the expense of longer credit from vendors.

Cash Conversion Cycle

The cash conversion cycle remained negative across all observed quarters, ranging approximately from -53 to -28 days. Despite fluctuations, the negative values indicate that payables are being paid after inventory and receivables cycles, effectively financing operations through extended supplier credit. There was a slight improvement toward less negative figures mid-period, followed by deeper negative values near the end, demonstrating strategic management of working capital.

In summary, the data depict a shift toward longer inventory and receivables cycles, offset by extended payables payment periods. The net effect keeps the cash conversion cycle negative, signaling reliance on payables financing. However, the general trend indicates a moderation of efficiency in inventory and receivables management accompanied by deliberate extension in payment terms to suppliers.

The cost of sales demonstrates a general upward trend over the observed periods, indicating increasing expenses related to the production of goods sold. Starting from approximately $4.3 billion in the first quarter of 2020, the cost of sales declines in the second quarter of 2020 but then steadily rises, reaching peaks of around $6.2 billion in late 2024 and maintaining a high level thereafter. This pattern suggests inflationary pressures, increased production volumes, or rising input costs influencing the cost structure.

Inventories, net, exhibit a moderate increasing trend as well, with fluctuations throughout the quarters. Beginning near $2.4 billion in early 2020, inventories rise gradually and fluctuate between approximately $3.0 billion and $4.3 billion in the later periods, with some periodic declines. These fluctuations may reflect supply chain dynamics, changes in demand forecasts, or inventory management strategies responding to market conditions.

The inventory turnover ratio, which is only available from the third quarter of 2020 onwards, shows relative stability with mild variations. The ratio mostly oscillates between approximately 5.1 and 6.5 times per period, without a clear long-term upward or downward trend. This indicates that despite changes in inventory levels and cost of sales, the efficiency of inventory usage relative to sales remains relatively constant, albeit with some seasonal or operational influences causing short-term variability.

Overall, the data illustrates rising costs and inventory values alongside reasonably stable inventory turnover efficiency. This could suggest that while the company is experiencing increasing cost pressures and building larger inventory stocks, it maintains consistent performance in converting inventory into sales. Monitoring these metrics will be crucial to assess the impact on profitability and working capital management going forward.

The financial data reveals several notable trends over the analyzed periods. Net revenues exhibit a general upward trajectory from March 31, 2020, through March 31, 2025, with occasional fluctuations. After a dip during mid-2020, net revenues recovered and showed consistent growth, reaching a peak toward the end of 2024 and early 2025, indicating increasing sales or improved pricing dynamics over time.

Trade receivables, net of allowance, also increased significantly across the periods. There was an initial decline in mid-2020, followed by a steady rise, especially from late 2021 onward. The increase in receivables may reflect higher credit sales, extended payment terms, or slower collections, which could impact cash flow if not managed efficiently.

The receivables turnover ratio shows a downward trend from the initial value recorded in late 2020. Beginning at approximately 11.57, the ratio declines gradually to 8.44 by the end of 2024. This decreasing turnover ratio suggests a slower collection process over time, possibly indicating that receivables are held for longer periods before conversion to cash. Such a trend could raise concerns about liquidity and credit risk management.

Net Revenues

Overall increasing trend from $6,707 million in March 2020 to $9,313 million by March 2025, reflecting growth with minor short-term fluctuations.

Trade Receivables, Net of Allowance

Marked increase from around $2,628 million in March 2020 to $4,318 million by March 2025, indicating rising outstanding customer balances.

Receivables Turnover Ratio

Declined from 11.57 at its highest (late 2020) to 8.44 by December 2024, suggesting slower collection periods and potential credit management challenges.

The financial data presents cost of sales, accounts payable, and payables turnover ratios over multiple quarters from March 2020 through March 2025. The trends observed are as follows:

Cost of Sales

Cost of sales demonstrated fluctuations with an overall increasing trend. Starting at 4,256 million USD in March 2020, the figure showed some seasonal variation but generally rose, peaking at 6,883 million USD in March 2025. Notable increases occurred particularly in late 2021 and from mid-2023 onward, reflecting either increased production costs or higher sales volume. Temporary dips, such as those seen in early to mid-2023, were followed by sharp recoveries.

Accounts Payable

Accounts payable similarly trended upwards throughout the period. Beginning at 5,554 million USD in March 2020, these liabilities increased steadily, reaching close to 9,921 million USD by March 2025. The trend shows consistent quarter-over-quarter growth with minor fluctuations, indicative of the company possibly extending payment terms or increasing procurement aligned with growing sales or inventory levels.

Payables Turnover Ratio

The payables turnover ratio, computed from the available data mainly from 2020 onward, reveals moderate volatility but an overall declining tendency. Initial values around 2.6 in late 2020 decreased towards approximately 2.35 by December 2024 before a slight uptick to 2.47 in March 2025. This downward trend suggests the company might be taking longer to pay its suppliers, reflecting possible changes in working capital management or cash flow optimization strategies.

In summary, the company experienced rising cost of sales and accounts payable over the analyzed period, while the payables turnover ratio decreased somewhat, implying longer payment cycles. These patterns could reflect growth in operational scale, changes in supplier financing terms, or strategic adjustments in cash management.

The quarterly financial data exhibits several notable trends over the analyzed periods.

Working Capital

The working capital values consistently remain negative throughout the entire timeframe, indicating that current liabilities exceed current assets. Notably, the negative working capital shows significant fluctuations, with some periods reflecting less negative balances, such as March 31, 2020 (-7936 million USD) improving somewhat by September 30, 2020 (-3239 million USD). However, this trend does not sustain, as working capital deteriorates again in subsequent quarters, reaching values as low as -8273 million USD by March 31, 2025. This pattern suggests ongoing liquidity management challenges or a strategic reliance on current liabilities.

Net Revenues

Net revenues demonstrate a general upward trajectory over the reported periods. Beginning at 6707 million USD on March 31, 2020, revenues experienced fluctuations but generally increased, peaking at 9604 million USD in December 31, 2024. Despite some dips, for example, a mild decline to 7274 million USD on June 30, 2022, the overall pattern is positive. This trend indicates improving sales or pricing power over the longer term.

Working Capital Turnover

There is no data provided for working capital turnover; consequently, no analysis can be offered on this ratio.

In summary, the company shows strong net revenue growth but faces persistent negative working capital, with fluctuations and a tendency towards increasing deficits. The combination suggests growing sales volumes in tandem with working capital management challenges, a dynamic that should be examined further for impact on operational efficiency and financial stability.

Inventory Turnover

Inventory turnover ratios were not available prior to March 31, 2020, but from that date onward, the ratio showed moderate fluctuations. Starting at 6.1 on March 31, 2020, it peaked at 6.45 on March 31, 2022, indicating a slightly higher velocity of inventory sales during that period. Subsequently, the turnover ratio generally declined, reaching 5.18 by September 30, 2024, before recovering slightly to 5.76 by March 31, 2025. This trend denotes a gradual slowdown in inventory turnover efficiency in recent periods, although some improvement is visible at the end of the series.

Average Inventory Processing Period

The average inventory processing period inversely corresponds to the inventory turnover ratio and shows a reciprocal pattern. Initially stable at 60 days between March and June 2020, the period lengthened somewhat in late 2020, reaching 64 days in September and December. It shortened to a low of 57 days by March 31, 2022, signifying faster inventory movement during that quarter. A subsequent increase followed, peaking at 70 days in December 2024, indicating slower inventory processing times. By March 31, 2025, the period decreased again to 63 days, suggesting an improvement in inventory management or sales efficiency.

Overall Analysis

The inventory turnover and average inventory processing periods display a cyclical pattern with visible fluctuations over the examined periods. The inventory turnover ratio suggests a peak in efficiency around early 2022, followed by a gradual but consistent decline, while the average processing period reflects corresponding lengthening. The latest data points indicate a potential reversal towards improved inventory management. These patterns may be reflective of changing market conditions, supply chain dynamics, or strategic inventory policies impacting the company's operational efficiency.

The analysis of the receivables turnover ratio and the average receivable collection period over the provided quarterly data reveals several notable trends and fluctuations in the company's credit and collection efficiency.

Receivables Turnover Ratio

This ratio demonstrates moderate variability across the periods observed. Starting from a level in early 2020 that is not recorded until Q1 2021, the turnover ratio exhibits periodic increases and decreases, averaging around the range of 9 to 12 times annually.

The highest peaks, such as around Q3 2021 (12.51) and Q1 2022 (12.29), indicate periods where the company collected receivables more efficiently, implying quicker conversion of credit sales into cash within those quarters.

Conversely, lower values, notably seen toward the end of the period in Q4 2024 (8.44), suggest slower collection and potentially higher credit risk or relaxed credit policies in those times.

Overall, the trend indicates some volatility without a clear directional increase or decrease from Q1 2021 through Q1 2025, warranting continuous monitoring.

Average Receivable Collection Period (Days)

Reflecting the inverse relationship to the receivables turnover ratio, the average collection period displays consistent fluctuations, typically varying between approximately 29 and 43 days throughout the periods.

Lower days of collection, such as 29 days in Q3 2020 and Q3 2022, correspond to higher turnover ratios, indicating efficient collections minimizing the risk of outstanding receivables.

Higher averages, including a peak of 43 days in Q1 2025, suggest extended credit duration or delays in collection, which may impact working capital management adversely.

The collection period generally oscillates around the mid-30-day range but exhibits a gradual lengthening towards the later quarters, particularly from mid-2023 onwards.

In summary, the data implies that the company experienced moderate fluctuations in the efficacy of its receivables management during the observed timeframe. While certain quarters show optimized collection cycles, others reflect slower turnover and prolonged receivables collection, which could affect liquidity and operational efficiency. These variations suggest potential areas for focus in credit policy and collection processes to enhance financial performance stability.

Average Inventory Processing Period

The average inventory processing period shows some fluctuations over the reported quarters. Beginning at 60 days in early 2020, it increased slightly to 64 days by September 2020 and remained around the low 60s through 2021. The period peaked at 65 days in September 2023 before trending down again to mid-60s by the end of 2024 and early 2025. This indicates a relatively stable inventory turnover timeframe with minor variations but no consistent trend of lengthening or shortening.

Average Receivable Collection Period

The average receivable collection period demonstrates more volatility compared to inventory days. Starting at 32 days in early 2020, the period increased to as high as 40 days in December 2023 and fluctuated between lows of 29 days and highs above 39 days throughout the timeframe. The later periods, especially from mid-2023 to early 2025, show a tendency toward longer collection times, reaching 43 days by March 2025. This suggests increasing challenges or strategic changes in receivables management and collection efficiency over time.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, follows a similar pattern of fluctuation. It started near the low 90s in days and increased to around 96-98 days during 2020-2021, before rising steadily to a peak of 108 days by December 2024. The overall trend points toward a lengthening operating cycle over the observed period, indicating that the company’s cash conversion process is taking more time, likely influenced by the longer receivable collection periods and somewhat stable but slightly rising inventory processing times.

Payables Turnover

The payables turnover ratio shows fluctuations throughout the observed periods. Starting at 2.6 in March 2020, it experienced a slight decline to 2.53 in June 2020. Subsequently, the ratio demonstrated a gradual recovery and modest increases, reaching a peak of 2.88 in December 2022 and September 2023. In the most recent periods, a downward trend is evident, with the ratio reducing to 2.35 in December 2024 before slightly rebounding to 2.47 by March 2025. Overall, the payables turnover ratio exhibits variability with some cyclical patterns but no sustained directional trend across the timeframe.

Average Payables Payment Period

The average payables payment period, measured in days, mirrors the inverse movements of the payables turnover ratio. The period began around 140 days in early 2020 and increased to 144 days by June 2020. It then gradually shortened, reaching a low of 127 days in December 2022 and September 2023. From this point onwards, the payment period extended again, peaking at 155 days in December 2024 before slightly decreasing to 148 days in March 2025. This pattern suggests intermittent shifts in the company's payment management practices, with periods of more prompt payment activity followed by relaxed payment terms in later quarters.

Summary Observation

The data indicates a cyclical behavior between the payables turnover and the average payment period, consistent with an inverse relationship typical of these metrics. Periods where the company expedited payments were accompanied by a higher turnover ratio, while extended payment terms correlated with a lower turnover. The recent extension in the payment period alongside a declining turnover ratio may imply strategic adjustments in managing payables, possibly influenced by external factors or internal cash flow considerations. No abrupt or unusual anomalies are detected, suggesting stable albeit dynamic payables management over the analyzed timeline.

The analysis of the quarterly financial data reveals several key trends in the company's working capital management metrics over the observed periods.

Average Inventory Processing Period

The average inventory processing period shows moderate fluctuations around the low 60s to high 60s in number of days after the initial recorded data starting at 60 days in March 2020. It ranges mostly between 57 and 70 days, indicating relatively stable inventory turnover duration with occasional slight increases and decreases. There is no clear upward or downward long-term trend, but some variability is noted in the later quarters, particularly a peak of 70 days in December 2024 before it drops slightly.

Average Receivable Collection Period

The average receivable collection period exhibits more notable variation over time, ranging roughly between 29 and 43 days. It starts at 32 days in March 2020, with noticeable fluctuations that include peaks around 39-40 days during 2023 and 2024. Despite periodic increases, including a high of 43 days in December 2024, the pattern appears cyclical without a sustained increase or decrease, suggesting varying efficiency in receivables collection across quarters.

Average Payables Payment Period

The average payables payment period remains significantly longer than inventory and receivables periods, consistently exceeding 120 days and peaking at 155 days in September 2024. It ranges mostly between 127 and 150 days, indicating the company maintains extended payment terms with suppliers. Some short-term dips are noted, such as around 127 days in late 2021 and early 2023, but the general tendency is toward long payment periods with slight upward movement over time.

Cash Conversion Cycle

The cash conversion cycle (CCC) remains negative throughout all recorded quarters, ranging between -53 and -28 days. This consistent negative CCC indicates that the company pays suppliers after collecting from customers and turning over inventory, effectively financing its operations through supplier credit. The CCC shows fluctuations, with a trend toward less negative values (improving) around late 2020 and early 2022 but generally stays between roughly -40 to -50 days over time. A few quarters such as December 2020 (-29 days) and December 2021 (-28 days) show the least negative values, indicating shorter cash cycle intervals during those periods. The overall financial management appears to maintain a strong position in working capital efficiency by leveraging payables.

In summary, the company's working capital metrics indicate a stable inventory turnover and receivable collection period with some quarter-to-quarter variation. The outstanding feature is the prolonged payables payment period, which significantly exceeds inventory and receivables durations, resulting in a consistently negative cash conversion cycle. This pattern suggests effective management of cash flow by delaying payments relative to the collection and turnover of assets. While some fluctuations occur, there is no evidence of a dramatic structural shift during the observed periods.