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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Mondelēz International Inc., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net operating profit after taxes (NOPAT)¹	5,271)	5,433)	3,016)	4,733)	3,858)
Cost of capital²	8.58%	8.82%	8.53%	8.48%	8.24%
Invested capital³	60,269)	61,495)	63,833)	61,560)	61,366)

Economic profit⁴	98)	6)	(2,427)	(490)	(1,197)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 5,271 – 8.58% × 60,269 = 98

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Mondelēz International Inc. economic profit increased from 2022 to 2023 and from 2023 to 2024.

Mondelēz International Inc., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings attributable to Mondelēz International	4,611)	4,959)	2,717)	4,300)	3,555)
Deferred income tax expense (benefit)¹	257)	(37)	(42)	205)	(70)
Increase (decrease) in allowances for credit losses²	(42)	12)	18)	2)	5)
Increase (decrease) in restructuring Program liability³	(3)	27)	(47)	(93)	3)
Increase (decrease) in equity equivalents⁴	212)	2)	(71)	114)	(62)
Interest expense, debt	508)	550)	428)	365)	423)
Interest expense, operating lease liability⁵	44)	36)	29)	21)	21)
Adjusted interest expense, debt	552)	586)	457)	386)	444)
Tax benefit of interest expense, debt⁶	(116)	(123)	(96)	(81)	(93)
Adjusted interest expense, debt, after taxes⁷	436)	463)	361)	305)	351)
Net income (loss) attributable to noncontrolling interest	12)	9)	9)	14)	14)
Net operating profit after taxes (NOPAT)	5,271)	5,433)	3,016)	4,733)	3,858)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowances for credit losses.

³ Addition of increase (decrease) in restructuring Program liability.

⁴ Addition of increase (decrease) in equity equivalents to net earnings attributable to Mondelēz International.

⁵ 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 795 × 5.50% = 44

⁶ 2024 Calculation
Tax benefit of interest expense, debt = Adjusted interest expense, debt × Statutory income tax rate
= 552 × 21.00% = 116

⁷ Addition of after taxes interest expense to net earnings attributable to Mondelēz International.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Mondelēz International Inc. NOPAT increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Mondelēz International Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Provision for income taxes	1,469)	1,537)	865)	1,190)	1,224)
Less: Deferred income tax expense (benefit)	257)	(37)	(42)	205)	(70)
Add: Tax savings from interest expense, debt	116)	123)	96)	81)	93)
Cash operating taxes	1,328)	1,697)	1,003)	1,066)	1,387)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Mondelēz International Inc. cash operating taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Mondelēz International Inc., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Short-term borrowings	71)	420)	2,299)	216)	29)
Current portion of long-term debt	2,014)	2,101)	383)	1,746)	2,741)
Long-term debt, excluding current portion	15,664)	16,887)	20,251)	17,550)	17,276)
Operating lease liability¹	795)	702)	680)	633)	660)
Total reported debt & leases	18,544)	20,110)	23,613)	20,145)	20,706)
Total Mondelēz International shareholders’ equity	26,932)	28,332)	26,883)	28,269)	27,578)
Net deferred tax (assets) liabilities²	3,092)	2,884)	2,964)	2,903)	2,556)
Allowances for credit losses³	74)	116)	104)	86)	84)
Restructuring Program liability⁴	188)	191)	164)	211)	304)
Equity equivalents⁵	3,354)	3,191)	3,232)	3,200)	2,944)
Accumulated other comprehensive (income) loss, net of tax⁶	12,471)	10,946)	10,947)	10,624)	10,690)
Noncontrolling interest	26)	34)	37)	54)	76)
Adjusted total Mondelēz International shareholders’ equity	42,783)	42,503)	41,099)	42,147)	41,288)
Construction in progress⁷	(1,058)	(1,118)	(879)	(732)	(628)
Invested capital	60,269)	61,495)	63,833)	61,560)	61,366)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of restructuring Program liability.

⁵ Addition of equity equivalents to total Mondelēz International shareholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction in progress.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Mondelēz International Inc. invested capital decreased from 2022 to 2023 and from 2023 to 2024.

Mondelēz International Inc., cost of capital calculations

Dec 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	74,287)	74,287)	÷	90,928)	=	0.82	0.82	×	10.06%	=	8.22%
Debt³	15,846)	15,846)	÷	90,928)	=	0.17	0.17	×	2.38% × (1 – 21.00%)	=	0.33%
Operating lease liability⁴	795)	795)	÷	90,928)	=	0.01	0.01	×	5.50% × (1 – 21.00%)	=	0.04%
Total:	90,928)					1.00					8.58%

Based on: 10-K (reporting date: 2024-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	103,504)	103,504)	÷	121,712)	=	0.85	0.85	×	10.06%	=	8.55%
Debt³	17,506)	17,506)	÷	121,712)	=	0.14	0.14	×	2.19% × (1 – 21.00%)	=	0.25%
Operating lease liability⁴	702)	702)	÷	121,712)	=	0.01	0.01	×	5.10% × (1 – 21.00%)	=	0.02%
Total:	121,712)					1.00					8.82%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	89,856)	89,856)	÷	110,753)	=	0.81	0.81	×	10.06%	=	8.16%
Debt³	20,217)	20,217)	÷	110,753)	=	0.18	0.18	×	2.40% × (1 – 21.00%)	=	0.35%
Operating lease liability⁴	680)	680)	÷	110,753)	=	0.01	0.01	×	4.20% × (1 – 21.00%)	=	0.02%
Total:	110,753)					1.00					8.53%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	93,046)	93,046)	÷	113,928)	=	0.82	0.82	×	10.06%	=	8.21%
Debt³	20,249)	20,249)	÷	113,928)	=	0.18	0.18	×	1.82% × (1 – 21.00%)	=	0.26%
Operating lease liability⁴	633)	633)	÷	113,928)	=	0.01	0.01	×	3.30% × (1 – 21.00%)	=	0.01%
Total:	113,928)					1.00					8.48%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	79,375)	79,375)	÷	101,603)	=	0.78	0.78	×	10.06%	=	7.86%
Debt³	21,568)	21,568)	÷	101,603)	=	0.21	0.21	×	2.17% × (1 – 21.00%)	=	0.36%
Operating lease liability⁴	660)	660)	÷	101,603)	=	0.01	0.01	×	3.20% × (1 – 21.00%)	=	0.02%
Total:	101,603)					1.00					8.24%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Mondelēz International Inc., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	98)	6)	(2,427)	(490)	(1,197)
Invested capital²	60,269)	61,495)	63,833)	61,560)	61,366)
Performance Ratio
Economic spread ratio³	0.16%	0.01%	-3.80%	-0.80%	-1.95%
Benchmarks
Economic Spread Ratio, Competitors⁴
Coca-Cola Co.	—	3.56%	3.25%	4.79%	2.60%
PepsiCo Inc.	5.64%	4.56%	4.54%	5.09%	3.74%
Philip Morris International Inc.	8.27%	8.90%	11.85%	26.04%	19.71%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 98 ÷ 60,269 = 0.16%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Mondelēz International Inc. economic spread ratio improved from 2022 to 2023 and from 2023 to 2024.

Mondelēz International Inc., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	98)	6)	(2,427)	(490)	(1,197)
Net revenues	36,441)	36,016)	31,496)	28,720)	26,581)
Performance Ratio
Economic profit margin²	0.27%	0.02%	-7.70%	-1.71%	-4.50%
Benchmarks
Economic Profit Margin, Competitors³
Coca-Cola Co.	—	6.49%	6.04%	9.95%	5.96%
PepsiCo Inc.	4.70%	3.74%	3.65%	4.47%	3.73%
Philip Morris International Inc.	10.57%	13.01%	17.71%	24.26%	21.95%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Economic profit. See details »

² 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Net revenues
= 100 × 98 ÷ 36,441 = 0.27%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Mondelēz International Inc. economic profit margin improved from 2022 to 2023 and from 2023 to 2024.

Mondelēz International Inc. (NASDAQ:MDLZ)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin