The Mosaic Company (MOS)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	9.99	10.65	8.99	10.35	11.14	9.46	13.12	13.00	11.25	10.70	7.83	9.61	8.07	10.33	10.93	10.98	9.85	9.94	12.02	11.72
Payables turnover	8.84	8.76	10.46	13.45	10.38	11.81	11.17	14.08	10.84	10.94	7.84	12.17	7.67	8.65	9.17	8.71	6.39	4.67	1.73	1.70
Working capital turnover	34.01	13.81	18.04	19.78	16.23	28.76	18.38	27.03	18.70	11.48	10.58	12.52	22.97	10.11	11.97	25.12	23.17	8.95	8.79	8.90

The activity ratios of The Mosaic Company provide insights into the efficiency of its operations.

1. Inventory Turnover: The inventory turnover ratio has shown a positive trend over the years, indicating that the company is efficiently managing its inventory levels. The ratio has increased steadily from 0.61 in March 2020 to 4.01 in December 2024, suggesting that the company is selling its inventory more frequently.

2. Receivables Turnover: The receivables turnover ratio fluctuates over the years, but generally remains at a moderate level. It peaked at 13.12 in June 2023, showing that the company is collecting its receivables more efficiently during that period.

3. Payables Turnover: The payables turnover ratio has also displayed fluctuations, indicating changes in the company's payment practices with suppliers. The ratio reached its highest point at 14.08 in March 2023, reflecting a quicker turnover of payables during that period.

4. Working Capital Turnover: The working capital turnover ratio has fluctuated significantly, indicating variations in the company's ability to generate sales revenue from its working capital. The ratio peaked at 34.01 in December 2024, suggesting that the company effectively utilized its working capital to generate sales during that period.

In conclusion, The Mosaic Company has shown improvement in its inventory turnover and working capital turnover ratios over the years, indicating enhanced efficiency in managing its resources. However, fluctuations in receivables and payables turnover ratios suggest the need for continuous monitoring and management of these aspects of the company's operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	90.98	103.41	84.49	83.08	76.05	68.54	83.43	83.82	92.33	105.16	112.57	117.58	103.45	92.10	94.42	102.27	129.08	178.22	507.84	599.66
Days of sales outstanding (DSO)	days	36.53	34.27	40.62	35.25	32.76	38.57	27.83	28.09	32.44	34.13	46.59	37.99	45.25	35.33	33.39	33.23	37.04	36.71	30.38	31.14
Number of days of payables	days	41.29	41.68	34.89	27.14	35.17	30.89	32.67	25.93	33.68	33.37	46.55	30.00	47.57	42.19	39.79	41.90	57.08	78.09	211.01	214.81

The activity ratios for The Mosaic Company provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH): This ratio indicates how many days it takes for the company to turn its inventory into sales. A lower DOH implies efficient inventory management. From March 31, 2020, to December 31, 2024, The Mosaic Company managed to significantly reduce its DOH from 599.66 days to 90.98 days by the end of 2024. The decreasing trend in DOH suggests improved inventory turnover and better control over stock levels.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect payments from its customers. A lower DSO indicates effective credit and collection policies. The Mosaic Company's DSO ranged from 27.83 days to 46.59 days during the period under review. The fluctuations in DSO imply varying collection efficiency, with improvements seen in some periods, but overall a relatively stable performance in managing receivables.

3. Number of Days of Payables: This ratio reflects how long the company takes to pay its suppliers. A higher number of days of payables suggests better cash flow management. The Mosaic Company's payables days ranged from 25.93 days to 214.81 days, with a noticeable decrease over the period. The decreasing trend indicates that the company has been able to manage its payables more efficiently, negotiating better payment terms with suppliers.

In conclusion, The Mosaic Company has shown improvements in inventory management and payable days over the years, while maintaining a relatively stable performance in receivables collection. These trends indicate an overall enhancement in operational efficiency and cash flow management for the company.

Long-term

	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
Fixed asset turnover	0.83	0.80	0.87	0.93	1.04	1.01	1.22	1.45	1.51	1.63	1.40	1.15	0.99	0.91	0.84	0.79	0.73	0.70	0.74	0.77
Total asset turnover	0.49	0.47	0.51	0.55	0.61	0.58	0.69	0.81	0.82	0.87	0.74	0.63	0.56	0.53	0.47	0.47	0.44	0.42	0.44	0.45

The Fixed Asset Turnover ratio for The Mosaic Company has shown a fluctuating trend over the analyzed period. It started at 0.77 in March 2020, decreased to 0.70 by September 2020, and then gradually increased to reach its peak at 1.63 in September 2022. However, it declined thereafter to 0.83 by the end of December 2024.

On the other hand, the Total Asset Turnover ratio has also experienced variations during the same period. Starting at 0.45 in March 2020, it slightly fluctuated until September 2021 where it began to show a more significant increase, peaking at 0.87 in September 2022. Subsequently, it decreased to 0.49 by the end of December 2024.

Overall, the Fixed Asset Turnover indicates how efficiently the company is utilizing its fixed assets to generate revenue, while the Total Asset Turnover reflects the efficiency of the company in generating sales from its total assets. The fluctuating trends in both ratios suggest changes in the company's asset utilization efficiency over the analyzed period.