The Mosaic Company (MOS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 96.78 | 80.19 | 96.73 | 109.27 | 83.34 |
| Days of sales outstanding (DSO) | days | 36.53 | 33.82 | 32.44 | 45.25 | 37.04 |
| Number of days of payables | days | 43.92 | 37.08 | 35.29 | 50.25 | 36.86 |
| Cash conversion cycle | days | 89.39 | 76.93 | 93.89 | 104.27 | 83.53 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 96.78 + 36.53 – 43.92
= 89.39
The cash conversion cycle of The Mosaic Company has exhibited fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 83.53 days, indicating that it took the company approximately 83.53 days to convert its investments in inventory and other resources into cash inflows. This figure increased to 104.27 days by December 31, 2021, suggesting a lengthening of the cycle.
Subsequently, by December 31, 2022, the cash conversion cycle decreased to 93.89 days, reflecting an improvement in the company's efficiency in managing its working capital. The cycle further decreased to 76.93 days by December 31, 2023, indicating a more efficient utilization of resources in generating cash flows.
However, by December 31, 2024, the cash conversion cycle had increased to 89.39 days, although it remained lower than the levels observed in 2021. Overall, the trend in The Mosaic Company's cash conversion cycle indicates some variability in the efficiency of its working capital management over the past five years.
Peer comparison
Dec 31, 2024