The Mosaic Company (MOS)
Cash conversion cycle
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 80.19 | 96.73 | 109.27 | 83.34 | 94.63 |
Days of sales outstanding (DSO) | days | 33.82 | 32.44 | 45.25 | 37.04 | 32.95 |
Number of days of payables | days | 37.08 | 35.29 | 50.25 | 36.86 | 31.01 |
Cash conversion cycle | days | 76.93 | 93.89 | 104.27 | 83.53 | 96.57 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.19 + 33.82 – 37.08
= 76.93
The cash conversion cycle of Mosaic Company has shown fluctuation over the past five years. In 2023, the company's cash conversion cycle decreased to 71.39 days compared to 76.99 days in 2022 and 78.35 days in 2021. This suggests an improvement in the efficiency of the company's working capital management in 2023.
However, in 2020, the cash conversion cycle was notably lower at 60.49 days, indicating that the company was more efficient in converting its investments in inventory and receivables into cash during that period. The cash conversion cycle increased again in 2021 and 2022 before improving in 2023.
Overall, Mosaic Company has shown some variability in its cash conversion cycle in recent years, which could be influenced by factors such as inventory management, credit terms with customers, and collection efficiency. Analyzing these fluctuations can provide insights into the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2023