The Mosaic Company (MOS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,122,800 | 13,696,100 | 19,125,200 | 12,357,400 | 8,681,700 |
| Total current assets | US$ in thousands | 4,498,300 | 4,745,000 | 6,556,600 | 5,325,300 | 3,521,200 |
| Total current liabilities | US$ in thousands | 4,171,300 | 3,873,700 | 5,533,800 | 4,787,400 | 3,146,500 |
| Working capital turnover | 34.01 | 15.72 | 18.70 | 22.97 | 23.17 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,122,800K ÷ ($4,498,300K – $4,171,300K)
= 34.01
The working capital turnover of The Mosaic Company has exhibited fluctuating trends over the past five years, as per the financial data provided. In 2020 and 2021, the company's working capital turnover was relatively stable, with values of 23.17 and 22.97, respectively. However, in subsequent years, there was a notable decrease in the working capital turnover ratio, dropping to 18.70 in 2022 and further declining to 15.72 in 2023.
The significant fluctuations in the working capital turnover ratio suggest potential changes in the efficiency of the company's operations in managing its working capital. A higher working capital turnover ratio indicates that the company is more efficient in utilizing its working capital to generate sales.
Surprisingly, in 2024, there was a substantial increase in the working capital turnover ratio to 34.01, which implies a sharp improvement in efficiency compared to the preceding years. This surge could be attributed to various factors such as better inventory management, tighter control over receivables and payables, or an increase in sales relative to working capital employed.
Overall, the analysis indicates that The Mosaic Company experienced fluctuations in its working capital turnover ratio over the years, with a significant improvement in 2024. Further examination of the company's operational strategies and financial performance may provide insights into the reasons behind these fluctuations and the potential impact on its overall business efficiency.
Peer comparison
Dec 31, 2024