The Mosaic Company (MOS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,696,100 | 19,125,200 | 12,357,400 | 8,681,700 | 8,906,300 |
| Receivables | US$ in thousands | 1,269,200 | 1,699,900 | 1,531,900 | 881,100 | 803,900 |
| Receivables turnover | 10.79 | 11.25 | 8.07 | 9.85 | 11.08 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $13,696,100K ÷ $1,269,200K
= 10.79
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. A higher ratio indicates a shorter time it takes to collect payments from customers.
Analyzing the receivables turnover of Mosaic Company over the past five years, we observe fluctuations in the ratio. In 2023, the receivables turnover ratio was 8.90, decreasing from 10.12 in 2022. This suggests that Mosaic took longer to collect its receivables in 2023 compared to the previous year.
Looking back further, we see a similar trend of variability in the receivables turnover ratio. In 2021, the ratio dropped to 7.45 from 8.17 in 2020 before increasing to 9.06 in 2019. This pattern indicates some inconsistency in Mosaic's ability to efficiently collect outstanding receivables over the years.
It is important for Mosaic to closely monitor its receivables turnover ratio to ensure prompt collection of payments and efficient management of its accounts receivable. The company should investigate the reasons behind the fluctuations in the ratio and implement strategies to improve collection efficiency, such as enhancing credit policies, communicating clearly with customers, and timely follow-ups on outstanding invoices.
Peer comparison
Dec 31, 2023