The Mosaic Company (MOS)
Payables 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 |
| Payables | US$ in thousands | 1,166,900 | 1,292,500 | 1,260,700 | 769,100 | 680,400 |
| Payables turnover | 9.84 | 10.34 | 7.26 | 9.90 | 11.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,485,500K ÷ $1,166,900K
= 9.84
The payables turnover for Mosaic Company has shown a fluctuating trend over the past five years. The highest payables turnover was in 2023 at 7.33, indicating the company paid off its accounts payable approximately 7.33 times during the year. This suggests that the company is managing its accounts payable efficiently by paying them off quickly.
In comparison, the payables turnover was lower in 2022 and 2020 at 6.54 and 5.41 respectively, but still within a reasonable range. However, there was a significant decrease in 2021 with a payables turnover of 4.57, which could indicate potential issues with managing and paying off accounts payable effectively during that period.
Overall, the increasing trend in payables turnover from 2019 to 2023 is generally positive as it suggests that Mosaic Company is improving its efficiency in managing its accounts payable. However, it is important to closely monitor any significant fluctuations in the payables turnover ratio to ensure the company's financial health and relationships with suppliers are being managed effectively.
Peer comparison
Dec 31, 2023