The Mosaic Company (MOS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.55 | 3.77 | 3.34 | 4.38 | 3.86 |
| Receivables turnover | 10.79 | 11.25 | 8.07 | 9.85 | 11.08 |
| Payables turnover | 9.84 | 10.34 | 7.26 | 9.90 | 11.77 |
| Working capital turnover | 15.72 | 18.70 | 22.97 | 23.17 | 7.91 |
The activity ratios of Mosaic Company provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.
- Inventory turnover has shown fluctuating trends over the years, with a peak in 2023 at 4.55 times, indicating that the company is turning over its inventory faster compared to previous years.
- Receivables turnover reflects how quickly the company collects payments from customers. The decreasing trend from 2019 to 2021 followed by an increase in 2022 and 2023 suggests varying effectiveness in collecting receivables.
- Payables turnover indicates the speed at which the company pays its suppliers. The increasing trend in payables turnover from 2019 to 2023 signifies that the company is taking longer to settle its payables, which could potentially benefit its cash flow management.
- Working capital turnover measures how efficiently the company generates revenue from its working capital. The high turnover ratios in recent years indicate that the company is effectively utilizing its working capital to generate sales.
Overall, Mosaic Company has shown improvements in managing its inventory and working capital efficiency over the years, though there have been fluctuations in receivables turnover. Maintaining a balance between these activity ratios is crucial for sustaining operational efficiency and financial stability.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 80.19 | 96.73 | 109.27 | 83.34 | 94.63 |
| Days of sales outstanding (DSO) | days | 33.82 | 32.44 | 45.25 | 37.04 | 32.95 |
| Number of days of payables | days | 37.08 | 35.29 | 50.25 | 36.86 | 31.01 |
The Days of Inventory on Hand (DOH) for Mosaic Company have shown a decreasing trend over the past five years, indicating that the company has been more efficient in managing its inventory levels and turning them into sales. In 2023, Mosaic Company had 80.19 days of inventory on hand, which is significantly lower compared to 109.27 days in 2021. This suggests that Mosaic has improved its inventory management practices.
The Days of Sales Outstanding (DSO) have fluctuated over the years, with a slight increase in 2023 compared to the previous year. A decreasing DSO signifies that the company is collecting its receivables more quickly, while an increasing DSO may indicate potential issues with collecting payments promptly. Mosaic's DSO was 41.00 days in 2023, slightly higher than the 36.06 days in 2022, but still relatively stable over the years.
The Number of Days of Payables demonstrates how long it takes for Mosaic Company to pay its suppliers. A decreasing trend in this ratio indicates that the company is taking longer to pay its suppliers, which can be advantageous from a cash flow perspective. Mosaic's Number of Days of Payables was 49.79 days in 2023, lower than the 55.80 days in 2022, indicating that the company is paying its suppliers more promptly in the most recent year.
Overall, Mosaic Company has shown improvements in inventory management and payment practices over the years, contributing to its operational efficiency and potential profitability. It is essential for the company to continue monitoring and optimizing these activity ratios to support its financial health and sustainability.
See also:
The Mosaic Company Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.01 | 1.51 | 0.99 | 0.73 | 0.76 |
| Total asset turnover | 0.59 | 0.82 | 0.56 | 0.44 | 0.46 |
The long-term activity ratios of Mosaic Company indicate its efficiency in utilizing its fixed and total assets to generate revenue over the past five years.
The fixed asset turnover ratio has shown fluctuations over the years, with a decrease from 1.51 in 2022 to 1.01 in 2023. This suggests that Mosaic has become less efficient in generating sales from its fixed assets in the most recent year. The ratio indicates that for every dollar invested in fixed assets, the company generated $1.01 in sales in 2023.
On the other hand, the total asset turnover ratio has also displayed variability, but with a general upward trend. The ratio increased from 0.46 in 2019 to 0.59 in 2023. This indicates that Mosaic has improved its overall asset utilization efficiency in generating sales. The total asset turnover ratio signifies that for every dollar invested in total assets, the company generated $0.59 in sales in 2023.
Overall, the trend in these long-term activity ratios suggests that Mosaic Company has been more efficient in utilizing its total assets to generate revenue compared to fixed assets. However, there is room for improvement in optimizing the usage of fixed assets to enhance sales generation in the future.