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Mondelez International Financial Analysis

Decent Essays
Mondelez International is an American multinational confectionery, food, and beverage company. I have been given the opportunity to analyze all ratios 8-14 for Mondelez. After a careful review of the Consolidated Balance Sheet, I am able to give the following analysis based on various ratios used to determine how well the company operates.
Inventory Turnover in Days 2015 (Ratio 8): This ratio will show how many times Mondelez inventory is sold and replaced over a period of time. Mondelez Inventory Turnover in Days is 61.31. So it takes 61.31 days to sell and replace their inventory; that is 5.95 times per year. Therefore, the result specifies a high turnover with strong sales performance. Such turning over inventory quickly also advances Mondelez liquidity and capability to keep up with immediate term debt obligations.
Working Capital 2015 (Ratio 9): This ratio computes the capital of Mondelez day to day trading operations. The amount of current assets minus the current liabilities will give the short-run solvency of the company. Mondelez’s working capital is (1964). This negative outcome implies that Mondelez liabilities that need to be paid within one year exceed the current assets that are monetizable over the same period. However, the negative working capital may lack the
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To measure this ability, the current total assets divided by the total current liabilities. Mondelez’s ratio resulted to .82, lower than one, which suggests that the company would be unable to pay off its obligations when it’s due. Also, shows Mondelez is not in good financial health, however it does not necessarily mean that they will go bankrupt. There are many ways to access financing, but it is definitely not a good sign. Moreover, it’s preferable to have a current ratio greater than 1.0; this will indicates ability to pay in a timely
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