The Mosaic Company (MOS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.77 | 4.55 | 3.77 | 3.34 | 4.38 |
| Receivables turnover | 9.99 | 10.79 | 11.25 | 8.07 | 9.85 |
| Payables turnover | 8.31 | 9.84 | 10.34 | 7.26 | 9.90 |
| Working capital turnover | 34.01 | 15.72 | 18.70 | 22.97 | 23.17 |
The Mosaic Company's inventory turnover has shown a decreasing trend over the years, from 4.38 in 2020 to 3.77 in 2024. This indicates that the company is selling its inventory at a slower rate in recent years.
In terms of receivables turnover, the company's performance has been relatively consistent, ranging from 8.07 in 2021 to 11.25 in 2022. This suggests that The Mosaic Company is efficient in collecting payments from its customers.
The payables turnover ratio for The Mosaic Company shows a decline from 9.90 in 2020 to 8.31 in 2024. This indicates that the company is taking longer to pay its suppliers, which may have implications for its relationships with vendors.
The working capital turnover ratio for The Mosaic Company has varied significantly over the years, ranging from 15.72 in 2023 to 34.01 in 2024. This may suggest fluctuations in the company's efficiency in generating revenue relative to its working capital.
Overall, The Mosaic Company should monitor its inventory turnover and payables turnover ratios to optimize its inventory management and vendor payment processes. The company's consistent receivables turnover ratio highlights its effectiveness in collecting payments from customers. Monitoring and understanding these activity ratios can help The Mosaic Company maintain healthy liquidity and operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.78 | 80.19 | 96.73 | 109.27 | 83.34 |
| Days of sales outstanding (DSO) | days | 36.53 | 33.82 | 32.44 | 45.25 | 37.04 |
| Number of days of payables | days | 43.92 | 37.08 | 35.29 | 50.25 | 36.86 |
Based on the provided data, we can analyze The Mosaic Company's activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, ranging from 80.19 days to 109.27 days. A higher number of days indicates that the company is holding inventory for a longer period before selling it. The increase in DOH from 2020 to 2021, followed by a decrease in subsequent years, suggests fluctuations in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- The DSO measures how long it takes for the company to collect payment after making a sale. The Mosaic Company's DSO has shown variability, ranging from 32.44 days to 45.25 days. A lower DSO indicates faster collection of accounts receivables, which is generally favorable for cash flow and liquidity.
3. Number of Days of Payables:
- This ratio represents how long a company takes to pay its suppliers. The Mosaic Company's number of days of payables has fluctuated between 35.29 days and 50.25 days. A shorter period indicates that the company is paying its suppliers more quickly, while a longer period suggests a slower payment cycle.
Overall, by analyzing these activity ratios, we can gain insights into The Mosaic Company's inventory management efficiency, accounts receivables collection effectiveness, and payment practices with suppliers. Management may need to focus on optimizing inventory levels, improving cash flow through efficient collections, and managing payables effectively to enhance overall operational and financial performance.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.83 | 1.01 | 1.51 | 0.99 | 0.73 |
| Total asset turnover | 0.49 | 0.59 | 0.82 | 0.56 | 0.44 |
The Fixed Asset Turnover ratio for The Mosaic Company has shown a fluctuating trend over the past five years. It increased from 0.73 in 2020 to 1.51 in 2022, signifying a significant improvement in the efficiency of the company in generating sales from its fixed assets. However, the ratio decreased to 1.01 in 2023 and further dropped to 0.83 in 2024, indicating a decline in the company's ability to utilize its fixed assets to generate revenue efficiently.
On the other hand, the Total Asset Turnover ratio also exhibited variability during the same period. It rose from 0.44 in 2020 to 0.82 in 2022, suggesting an enhancement in the company's overall efficiency in generating sales from its total assets. However, the ratio then dropped to 0.59 in 2023 and further to 0.49 in 2024, indicating a reduction in the company's ability to generate revenue in relation to its total assets.
Overall, the fluctuating trends in both the Fixed Asset Turnover and Total Asset Turnover ratios for The Mosaic Company suggest varying levels of efficiency in utilizing its assets to generate sales over the analyzed period. Further analysis and consideration of additional factors would be necessary to better understand the underlying reasons for these fluctuations and to assess the company's long-term performance accurately.