Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Mondelez's free cash flow improved versus both the preceding quarter and the same quarter one year earlier. Higher operating cash flow more than offset an increase in capital expenditure, resulting in stronger free cash flow and margin.
- Operating cash flow as a proportion of revenue increased, and after deducting capital expenditure, free cash flow margin also improved. The conversion of revenue into free cash flow strengthened compared to both prior periods.
- Compared to the immediately preceding quarter, free cash flow and margin both increased. Relative to the same quarter one year earlier, free cash flow and margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$332.0M
Capital spending and related asset purchases.
FCF margin
13.2%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-03-31 | $9.2B | $1.1B | $223.0M | $900.0M | 9.8% |
| 2023-06-30 | $8.5B | $850.0M | $272.0M | $578.0M | 6.8% |
| 2023-09-30 | $9.0B | $1.2B | $285.0M | $892.0M | 9.9% |
| 2023-12-31 | $9.3B | $1.6B | $332.0M | $1.2B | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow growth
Free cash flow was supported by a larger year-over-year and sequential increase in operating cash flow, which exceeded the rise in capital spending.
The higher operating cash flow was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased, and after deducting capital expenditure, free cash flow margin also improved. The conversion of revenue into free cash flow strengthened compared to both prior periods.
Compared to the immediately preceding quarter, free cash flow and margin both increased. Relative to the same quarter one year earlier, free cash flow and margin also improved.
Capital expenditure increased from both the prior quarter and the year-ago quarter; monitor its trajectory relative to operating cash flow.