The Mosaic Company (MOS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 741.72 | 2,178.51 | 2,621.26 | 2,518.28 |
| Days of sales outstanding (DSO) | days | 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 | 32.89 | 30.16 | 26.23 | 29.62 |
| Number of days of payables | days | 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 | 243.05 | 727.44 | 781.00 | 765.25 |
| Cash conversion cycle | days | 73.64 | 76.22 | 78.59 | 85.97 | 91.09 | 105.92 | 112.61 | 125.58 | 101.12 | 85.24 | 88.01 | 93.60 | 109.04 | 136.84 | 327.21 | 415.98 | 531.56 | 1,481.23 | 1,866.49 | 1,782.66 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 76.05 + 32.76 – 35.17
= 73.64
The cash conversion cycle for Mosaic Company has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at 71.39 days, representing a slight increase compared to the previous quarter. Despite this increase, the cycle remains relatively stable compared to earlier quarters, such as Q1 2023 when it was at 80.15 days.
Looking back at Q2 and Q3 2022, the cash conversion cycle exceeded 100 days, indicating a longer duration for the company to convert its investments in inventory and accounts receivable into cash. This prolonged cycle could potentially signal inefficiencies in the company's working capital management during that period.
Overall, Mosaic Company has shown some variability in its cash conversion cycle, with fluctuations observed quarter to quarter. It is important for the company to monitor and potentially improve this metric to ensure efficient working capital management and overall financial health.
Peer comparison
Dec 31, 2023