The Mosaic Company (MOS)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 10,223,800 | 10,317,200 | 11,033,500 | 11,435,300 | 12,110,500 | 13,063,400 | 13,775,800 | 14,458,000 | 14,007,000 | 13,124,200 | 11,805,000 | 10,326,000 | 9,672,400 | 9,010,900 | 8,483,100 | 6,640,600 | 4,918,100 | 3,443,400 | 1,404,400 | 1,175,300 |
| Inventory | US$ in thousands | 2,548,400 | 2,923,000 | 2,554,000 | 2,603,000 | 2,523,200 | 2,453,200 | 3,148,700 | 3,320,000 | 3,543,100 | 3,781,200 | 3,640,900 | 3,326,500 | 2,741,400 | 2,273,600 | 2,194,400 | 1,860,700 | 1,739,200 | 1,681,300 | 1,954,000 | 1,930,900 |
| Inventory turnover | 4.01 | 3.53 | 4.32 | 4.39 | 4.80 | 5.33 | 4.38 | 4.35 | 3.95 | 3.47 | 3.24 | 3.10 | 3.53 | 3.96 | 3.87 | 3.57 | 2.83 | 2.05 | 0.72 | 0.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $10,223,800K ÷ $2,548,400K
= 4.01
The inventory turnover ratio for The Mosaic Company provides insight into how efficiently the company manages its inventory. A higher turnover ratio indicates that the company is selling its inventory more frequently, which can be a positive sign of effective inventory management.
Analyzing the data provided, we observe that The Mosaic Company's inventory turnover has shown a general increasing trend over the quarters. Starting at a low of 0.61 in March 2020, the ratio has steadily improved to reach 4.01 by December 2024, with occasional fluctuations along the way.
The significant increase in the inventory turnover ratio from 2020 to 2024 suggests that The Mosaic Company has been more efficient in selling its inventory over time. This could be due to various factors such as improved inventory management practices, more effective sales strategies, or better demand forecasting.
It is important to note that while a higher inventory turnover ratio is generally favorable, an extremely high ratio could indicate inventory shortages and potential lost sales. On the other hand, a low turnover ratio may imply excess inventory levels or slow-moving goods, which can tie up capital and lead to higher holding costs.
In conclusion, the increasing trend in The Mosaic Company's inventory turnover ratio reflects improved efficiency in managing and selling inventory over the quarters, signaling positive developments in the company's operations. However, further analysis and comparison with industry benchmarks may provide deeper insights into the company's inventory management performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024