Mondelez International Inc. A Stock

When diving into the financials of Mondelez (NASDAQ: MDLZ), a major player in the Food & Tobacco industry, it's clear that the company presents a mixed picture. With a rich portfolio of snack brands and a solid market presence, Mondelez appeals to many investors. However, a closer look at the financial statements reveals both strengths and weaknesses that should be carefully examined.

Mondelez's balance sheet reveals a total asset value of approximately 71.39 billion. Amidst this, significant intangible assets, particularly goodwill, amount to around 23.90 billion. This indicates that the company has made substantial investments in acquiring brand identity and recognition. However, the liabilities also paint a picture that warrants caution: total liabilities are around 43.03 billion, which postulates a debt that exceeds the retained earnings of approximately 34.24 billion. This imbalance raises concerns about the company's ability to manage and sustain its financial obligations in the long run.

Analyzing the balance sheet further, the current ratio—a measure of short-term financial health—appears concerning. With total current liabilities at about 19.01 billion against total current assets of only 11.70 billion, it accounts for a current ratio of approximately 0.62. A ratio below 1 indicates that Mondelez may struggle to meet short-term liabilities without selling off long-term assets. The negative net working capital of around -7.31 billion is another red flag that signals potential liquidity issues.