Mondelez International (MDLZ)- Part 3

How the company’s inventory accounting has merely delayed the brunt of higher costs

This is the final part of our look at the main concerns we have with the earnings quality of Mondelez International (MDLZ). Subscribers can link to Part 1 and Part 2. which deal with longer-term problems we have been tracking over time for our institutional clients. MDLZ recently missed fourth-quarter earnings targets owing in part to a decline in gross margin. Today’s installment will examine a concern we have related to the company’s inventory accounting which we believe is pointing to more disappointment ahead.