The Mosaic Company (MOS)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.98 | 103.41 | 84.49 | 83.08 | 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 |
| Days of sales outstanding (DSO) | days | 36.53 | 34.27 | 40.62 | 35.25 | 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 |
| Number of days of payables | days | 41.29 | 41.68 | 34.89 | 27.14 | 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 |
| Cash conversion cycle | days | 86.23 | 96.00 | 90.21 | 91.19 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 90.98 + 36.53 – 41.29
= 86.23
The cash conversion cycle (CCC) of The Mosaic Company has shown a downward trend over the past few years, indicating improved efficiency in managing its working capital. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the CCC decreased steadily from 415.98 days to 86.23 days. This reduction suggests that The Mosaic Company has been able to streamline its operations, optimize inventory management, and collect receivables more efficiently.
The significant drop in CCC from March 31, 2020, to December 31, 2023, from 415.98 days to 73.64 days, is particularly noteworthy, indicating a substantial improvement in the company's working capital management practices.
However, there was a slight increase in CCC from December 31, 2023, to December 31, 2024, which could indicate a potential slowdown in the company's cash conversion efficiency during that period. It would be important to monitor this trend in the future to ensure optimal working capital management and sustainable growth for The Mosaic Company.
Peer comparison
Dec 31, 2024