The Mosaic Company (MOS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,485,500 | 13,369,400 | 9,157,100 | 7,616,800 | 8,009,000 |
| Inventory | US$ in thousands | 2,523,200 | 3,543,100 | 2,741,400 | 1,739,200 | 2,076,400 |
| Inventory turnover | 4.55 | 3.77 | 3.34 | 4.38 | 3.86 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,485,500K ÷ $2,523,200K
= 4.55
The inventory turnover ratio for Mosaic Company has shown variability over the past five years. In 2023, the inventory turnover ratio was at 4.55, which indicates that the company converted its inventory into sales 4.55 times during the year. This represents an improvement compared to the previous years, as the ratio was 3.77 in 2022, 3.34 in 2021, 4.38 in 2020, and 3.86 in 2019.
A higher inventory turnover ratio generally indicates that the company manages its inventory levels efficiently and effectively. It suggests that Mosaic Company is selling its inventory quickly, minimizing the carrying costs associated with excess inventory.
However, it is essential to analyze the inventory turnover ratio in conjunction with industry benchmarks and other financial metrics to gain a comprehensive understanding of Mosaic Company's inventory management practices and overall financial performance.
Peer comparison
Dec 31, 2023