Mondelēz International Inc. (NASDAQ:MDLZ)

The analysis of the quarterly financial ratios and periods reveals several noteworthy trends over the observed timeline.

Inventory Turnover

The inventory turnover ratio demonstrates a general declining trend from early 2021, starting at 6.13 and fluctuating downward to values around 5.09 by the third quarter of 2025. There are intermittent increases, such as at the end of 2021 and 2023, but the overall trajectory suggests a reduction in how frequently inventory is sold and replaced annually.

Receivables Turnover

This ratio experiences considerable volatility. It peaks at 12.51 in the second quarter of 2021 and declines significantly to lower levels around 8.44 to 9.51 in later years, particularly from 2024 onwards. This pattern indicates a decreasing efficiency in collecting receivables over time, with longer collection periods implied.

Payables Turnover

The payables turnover ratio remains relatively stable but shows a slight decline towards the latter periods. It fluctuates between roughly 2.35 and 2.88, with some increases noted in mid-2022 to late 2023. The trend reflects moderate consistency in the rate at which payables are settled.

Average Inventory Processing Period

There is a gradual increase in the average inventory processing period, moving from 60 days at the start of 2021 up to around 70-72 days in the latter part of 2024 and 2025. This increase suggests inventory remains on hand longer before being sold, aligning with the decreasing inventory turnover ratio.

Average Receivable Collection Period

The receivable collection period also shows an increasing trend. From 36 days at the beginning of 2021, it reaches levels above 40 days in the 2024-2025 timeframe, with occasional fluctuations. This supports the observations from the receivables turnover ratio indicating slower collection.

Operating Cycle

The operating cycle lengthens progressively from 96 days to approximately 113 days over the course of the data. This reflects a combined effect of longer inventory processing and receivable collection periods, hinting at a slower overall operational throughput.

Average Payables Payment Period

There is a noticeable upward shift in the average payables payment period, moving from about 140 days in early 2021 to peaks above 150 days in 2024 and over 145 days in 2025. This indicates the company is taking longer to pay its suppliers, possibly managing cash outflows more conservatively.

Cash Conversion Cycle

The cash conversion cycle values remain negative throughout the period, indicative of payables deferral exceeding the combined inventory and receivables periods. However, the cycle becomes less negative over time, moving from around -48 days in early 2021 to about -28 days by late 2025. This suggests a lengthening in the cash tied up in operations, reducing the timing advantage previously held.

Overall, the data reflects a gradual deceleration in operational efficiency, with slower inventory turnover and receivables collection alongside extended payment periods. The elongating operating and cash conversion cycles point to potentially increased working capital requirements or changes in operational management strategies. Sustained attention to these trends is advisable to optimize liquidity and operational performance.

Cost of Sales

The cost of sales demonstrated a generally increasing trend over the observed periods. Starting at 4,272 million USD in the first quarter of 2021, costs fluctuated but showed a marked upward trajectory by the end of the reporting period, reaching 7,132 million USD in the third quarter of 2025. Notably, there was a significant rise from the first quarter of 2024 onwards, indicating increased production or procurement costs towards the later years.

Inventories, Net

Net inventories also displayed an upward trend during the examined timeframe. Initial levels of 2,635 million USD in the first quarter of 2021 progressively increased to above 5,000 million USD by the third quarter of 2025. This growth was steady with some fluctuations, particularly evident in the later periods where inventory values crossed the 4,000 million USD mark and continued to rise, suggesting higher stock levels or accumulation of goods on hand over time.

Inventory Turnover

The inventory turnover ratio exhibited moderate volatility without a clear long-term directional trend. It started around 6.13 in early 2021, with fluctuations generally between 5.0 and 6.5 across quarters. A subtle decline is noted in the ratio towards the final periods, falling to about 5.09 by the third quarter of 2025. This decrease could imply a slower movement of inventory relative to cost of sales, possibly due to increased inventory levels not matched by corresponding increases in sales.

Comprehensive Insights

The simultaneous increase in cost of sales and inventories coupled with a slight decline in inventory turnover suggests a gradual buildup of inventories, possibly in anticipation of higher demand or supply chain adjustments. The rising cost of sales reflects higher operational expenses or greater volume sold. However, the declining inventory turnover ratio toward the end of the period indicates that inventory management efficiency may be weakening, potentially impacting working capital utilization.

The analysis of the quarterly financial data reveals several key trends and observations regarding net revenues, trade receivables (net of allowances), and receivables turnover ratios over the specified periods.

Net Revenues

Net revenues exhibit a generally increasing trend across the entire timeline, with some fluctuations. Starting from 7,238 million USD in March 2021, revenues experience minor declines and recoveries in subsequent quarters but steadily climb to reach 9,744 million USD by September 2025. Seasonal patterns are notable, with the fourth quarter often showing the highest revenue figures, as seen in December 2021 (7,658 million USD), December 2022 (8,695 million USD), December 2023 (9,314 million USD), and December 2024 (9,604 million USD). This recurring peak suggests strong year-end sales performance.

Trade Receivables, Less Allowance

Trade receivables, net of allowances, generally follow an upward trend consistent with the increase in net revenues but display some periodic variation. Beginning at 2,655 million USD in March 2021, trade receivables rise to 4,189 million USD by September 2025. Similar to revenues, there is a tendency for trade receivables to peak in the early parts of the year, possibly reflecting sales timing and credit extensions. Notably, the fourth quarter of each year often sees elevated receivables, indicating that credit sales corresponding to strong year-end revenues result in higher outstanding amounts. There is also variability in the middle quarters, which suggests some impact from collections or changes in credit policy.

Receivables Turnover

The receivables turnover ratio demonstrates a fluctuating yet generally declining trend over time. Initial turnover rates are relatively high, with values such as 12.51 in June 2021 and 12.29 in December 2021, indicating efficient credit collections. However, from 2022 onwards, turnover ratios decline, reaching around 8.99 by September 2025. This downward trend suggests a lengthening in the average collection period or a relaxation of credit terms. Quarterly fluctuations in the turnover ratio correspond to peaks and troughs in receivables and revenues; notably, lower turnover rates often align with quarters of higher trade receivables, which supports the interpretation of increased outstanding credit.

In summary, the company demonstrates growth in revenues accompanied by increased trade receivables, consistent with expanding sales volumes. However, the decreasing receivables turnover ratio signals potential elongation in collection cycles, which may warrant attention to credit management practices to maintain cash flow efficiency amid growing sales.

Cost of Sales

The cost of sales exhibits a generally upward trend over the analyzed quarters. Starting from approximately 4.3 billion USD in the first quarter of 2021, it experiences fluctuations but maintains a rising trajectory, peaking around 7.1 billion USD in late 2025. Notable increases occur at the end of each year, with sharp rises observed in the final quarters of 2022 and 2024. Some periods, such as mid-2023 and mid-2024, show decreases or slower growth, indicating possible seasonal variation or operational adjustments.

Accounts Payable

Accounts payable also demonstrates a rising pattern, increasing from about 6.4 billion USD in early 2021 to over 10 billion USD by late 2025. The growth is relatively steady, with incremental increases each quarter. Periods of more pronounced acceleration appear in the years 2024 and 2025. This rise may reflect expanded purchasing or delayed payments aligned with higher inventories or cost structures.

Payables Turnover Ratio

The payables turnover ratio fluctuates within a narrow range between approximately 2.3 and 2.9 across the periods. Initially, it rises from 2.53 to a peak near 2.88 in late 2021 and late 2022, suggesting improved efficiency in payment processing during these intervals. However, after this peak, the ratio declines to values closer to 2.35 in 2024, indicating a slower turnover of payables. Towards the end of the series, a modest recovery is visible, moving back toward 2.59, which may signify adjustments in payment policies or supplier negotiations.

Integrated Analysis

The simultaneous increase in both cost of sales and accounts payable suggests expanded business activity, with higher procurement volumes or increased input costs. The less consistent payables turnover ratio indicates fluctuating management of payment cycles relative to the scale of payables. Declines in turnover ratio during periods of rising payables may point to extended payment terms or slowed payments, while increases could imply faster settlement of obligations. Seasonal patterns are suggested by repeated year-end spikes in cost of sales and accounts payable, potentially reflecting inventory buildup or strategic purchasing.

The analysis of the quarterly financial data reveals several key trends regarding working capital, net revenues, and the implied working capital turnover for the company over the periods observed.

Working Capital

The working capital consistently remains negative throughout the observed periods, indicating that current liabilities exceed current assets in each quarter. This negative working capital position fluctuates significantly, with values ranging roughly between -$3.8 billion and -$8.4 billion. There is an observable pattern of increasing magnitude in the negative working capital from early 2021 to the latter part of 2025, pointing toward a growing gap between current liabilities and assets. Quarter-over-quarter changes show both increases and decreases in the negative figure; however, the general trend over the entire timeframe is a deepening negative working capital. Notably, the quarters at the end of each year sometimes show a spike, such as in December 2022 and December 2024, which may reflect seasonal working capital needs or accounting treatments.

Net Revenues

Net revenues exhibit a positive and generally upward trend over time. Starting at approximately $7.2 billion in the first quarter of 2021, revenues show some quarter-to-quarter variability but largely increase, reaching near $9.7 billion by the first quarter of 2025. Seasonal fluctuations appear, common in many consumer-facing companies, with some quarters like the fourth quarter typically exhibiting higher revenues, which is consistent with increased consumer spending during holiday seasons. Despite these seasonal variations, the overall trajectory reflects growth in net sales over the years.

Working Capital Turnover

While this ratio is not directly provided, it can be inferred by calculating net revenues divided by working capital. Given the negative working capital, this ratio would be negative and may not provide meaningful interpretative value in standard terms. The persistence of a negative working capital means that the company is likely relying on short-term liabilities to fund part of its operations, a strategy common in certain industries but requiring cautious management due to liquidity risk.

Overall Insights

The company demonstrates growing revenue streams alongside a consistently negative working capital position that worsens slightly over time. This combination may indicate an increasing reliance on short-term financing or operational strategies that leverage supplier credit and payables. While rising revenues suggest business expansion or improved sales, the increasing negative working capital calls for careful liquidity monitoring to avoid operational risks. Seasonal patterns in revenues and working capital should also be taken into account for cash flow management and strategic planning.

Inventory Turnover Trend

The inventory turnover ratio displayed a fluctuating but generally declining pattern over the observed periods. Initially, the ratio was 6.13 at the beginning of 2021, reaching a peak at 6.45 by the end of 2021. However, from 2022 onward, the ratio experienced a gradual descent, falling to values around 5.35 to 5.18 in the third quarter of 2024. Although there was a minor recovery to 5.8 in the final quarter of 2024, the ratio resumed its decline to levels near 5.06–5.09 by the third quarter of 2025. This trend suggests a slowdown in the frequency with which inventory is sold and replenished.

Average Inventory Processing Period Trend

The average inventory processing period, expressed in number of days, reveals an inverse relationship with the inventory turnover ratio, as expected. Starting at 60 days in March 2021, the period briefly improved to 57 days by the end of 2021. Subsequently, the processing period extended notably, peaking at 70 days in the third quarter of 2024 and sustaining at approximately 72 days through 2025. This lengthening indicates that inventory remained on hand for longer periods before being sold, consistent with the observed decrease in turnover ratio.

Overall Interpretation

The longitudinal data indicate a general deterioration in inventory management efficiency over the examined timeframe. The declining turnover ratio along with the increasing processing period imply challenges in inventory movement, potentially leading to higher holding costs and risks of obsolescence. These patterns might signal the need for reassessment of inventory strategies or sales performance to enhance operational effectiveness.

Receivables Turnover

The receivables turnover ratio exhibits a fluctuating trend over the observed periods. Initially, the ratio increased from 10.21 to a peak of 12.51 before experiencing successive declines and recoveries within the subsequent quarters. Notably, after reaching 12.29 at the end of 2021, the ratio generally trended downward, hitting a low near 8.44 in the third quarter of 2025. Periods of slight recovery followed, but the overall trajectory suggests a weakening in turnover efficiency in recent quarters compared to earlier years.

Average Receivable Collection Period

The average receivable collection period displays an inverse pattern relative to the receivables turnover. Starting at 36 days, it decreased to a low of 29 days by mid-2021, corresponding with the increase in turnover. However, from that point forward, the collection period has generally extended, reaching as high as 43 days in the third quarter of 2025. This extension indicates that the company is taking longer on average to collect receivables, which corresponds to the decreasing receivables turnover ratio over the same timeframe.

Overall Analysis

The data reflects a gradual decline in receivables management efficiency over the analyzed periods. The increasing average collection days coupled with declining turnover ratios suggest potential challenges in receivables collection or changes in credit terms. While short-term fluctuations are evident, the longer-term pattern points to a lengthening of the cash conversion cycle. Monitoring and potentially addressing the factors contributing to these trends could be important for maintaining liquidity and operational effectiveness.

Inventory Processing Period

The average inventory processing period exhibits fluctuations throughout the timeframe, beginning at 60 days and reaching its lowest at 57 days in late 2021. A general upward trend is observed from early 2023, peaking at 72 days in late 2025. This indicates a lengthening period for inventory turnover over time, with occasional periods of slight decline or stabilization.

Receivable Collection Period

The average receivable collection period shows variability across the periods with values oscillating between 29 and 43 days approximately. Notably, there is an increase towards the end of the timeframe, culminating at 41 days in the last quarter of 2025. This suggests a modest lengthening in the time taken to collect receivables, yet the changes remain somewhat inconsistent quarter-to-quarter.

Operating Cycle

The operating cycle demonstrates a general upward trend over the period analyzed, starting near 96 days and increasing to 113 days at the conclusion. This increase corresponds with the observed rises in both inventory processing and receivable collection periods. The operating cycle's fluctuations reflect the combined effect of these two components, indicating that the overall cash conversion cycle has lengthened, potentially signaling increased capital tied up in operations.

Payables Turnover Ratio

The payables turnover ratio exhibits moderate fluctuations over the examined periods. Initially, it increased from 2.53 in March 2021 to a peak of 2.88 in September 2021. Following this peak, it experienced a decline toward the end of 2021 and early 2022, reaching 2.48 in March 2022. Throughout 2022 and into 2023, the ratio recovered to levels close to the previous highs, consistently hovering around 2.67 to 2.88 in most quarters. However, starting from March 2024, the ratio demonstrated a gradual downward trend, declining to 2.35 in December 2024 before slightly rising again to 2.59 by September 2025.

Average Payables Payment Period (Days)

The average payables payment period shows an inverse movement relative to the payables turnover ratio, as expected. It began at 144 days in March 2021, decreasing steadily to 127 days by September 2021. The payment period then increased again in early 2022, reaching 147 days in March 2022. During 2022 and 2023, the number of days fluctuated between roughly 127 and 136, indicating relatively stable payment timing. Starting in early 2024, the payment period lengthened notably, peaking at 155 days in December 2024, before declining slightly to 141 days by September 2025.

Overall Trends and Insights

The data reveals a general inverse relationship between the payables turnover ratio and the average payment period, consistent with the nature of these metrics. Periods of higher turnover ratios correspond to shorter payment periods and vice versa. The early phases showed a tightening in payment timing with higher turnover and shorter payables periods, while mid to later phases indicate a relaxation in payment terms, as companies extended their average payment days. This pattern may reflect changes in working capital management strategies, supplier terms negotiations, or responses to external economic conditions. The recent trend toward longer payment periods coupled with reduced turnover suggests a shift to more conservative cash outflows or potentially longer supplier credit terms.

Inventory Processing Period

The average inventory processing period exhibits fluctuations over the observed periods, generally ranging between 57 and 72 days. Initially starting at around 60 days, it shows moderate variability, with a notable increase towards the later periods, peaking close to 70–72 days. This suggests some variability in the time taken to convert raw materials into finished goods or sales, with occasional extensions in inventory holding.

Receivable Collection Period

The average receivable collection period displays a variable trend, typically between 29 and 43 days. Early periods indicate relatively shorter collection periods around 29–36 days, while later periods see some increases, reaching up to 43 days in certain quarters. This upward trend in some quarters could imply slower collection of receivables or credit terms becoming more extended in those periods.

Payables Payment Period

The average payables payment period remains consistently higher than the inventory and receivables periods, fluctuating in a range from approximately 127 to 155 days. While some downward movements are observed initially, the payables period generally increases or remains elevated in the later periods, indicating the company is maintaining longer payment terms to suppliers, which could be a strategic cash management approach.

Cash Conversion Cycle

The cash conversion cycle is consistently negative throughout the observed periods, ranging approximately from -54 days up to about -28 days. This negative cycle implies the company typically collects cash from customers before it needs to pay its suppliers, which is indicative of efficient working capital management. Despite some fluctuations, the cycle remains negative, with slight trends towards less negative values in some of the later periods, which may warrant monitoring.

Overall Insights

The financial data indicates that the company manages its working capital with an efficient approach, notably through extended payables periods that surpass its receivables collection and inventory processing times. The negative cash conversion cycle consistently supports liquidity by enabling the firm to hold onto cash for longer before disbursing funds. Variations in inventory and receivables periods could reflect operational adjustments or market conditions affecting turnover rates and credit policies. The recent slight increases in inventory processing and receivable collection periods may signal emerging delays, which should be observed for potential impacts on cash flow.