The Mosaic Company (MOS)

Liquidity ratios

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
Current ratio 1.22 1.10 1.18 1.13 1.18 1.34 1.30 1.23 1.11 1.32 1.21 1.11 1.12 1.31 1.30 1.29 1.43 1.51 1.67 1.73
Quick ratio 0.42 0.42 0.38 0.37 0.44 0.51 0.55 0.48 0.48 0.74 0.73 0.66 0.68 0.84 0.57 0.55 0.51 0.53 0.44 0.49
Cash ratio 0.09 0.13 0.13 0.09 0.13 0.14 0.15 0.17 0.16 0.43 0.50 0.41 0.40 0.56 0.34 0.33 0.20 0.24 0.16 0.16

The liquidity ratios of Mosaic Company indicate its ability to meet short-term financial obligations.

The current ratio has shown some variability over the past eight quarters, ranging from 1.10 to 1.34. While the ratio has generally been above 1, suggesting that the company has more current assets than current liabilities, it dipped to 1.10 in Q3 2023, which may raise concerns about its ability to cover short-term obligations. Overall, the current ratio has shown some stability, with fluctuations within a reasonable range.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also exhibits fluctuations between 0.49 and 0.65 over the same period. The declining trend since Q2 2022 may indicate challenges in meeting short-term obligations without relying on inventory liquidation.

The cash ratio, which provides the most conservative assessment of liquidity by considering only cash and cash equivalents, has fluctuated between 0.15 and 0.23. The ratio dropped to 0.15 in Q1 2023 but recovered slightly in subsequent quarters. This suggests that Mosaic Company may have limited cash reserves compared to its current liabilities, which could potentially impact its ability to cover immediate obligations.

Overall, Mosaic Company's liquidity ratios demonstrate some fluctuations over the past eight quarters, with the current ratio generally above 1 but showing some instability, the quick ratio declining since Q2 2022, and the cash ratio fluctuating at a lower level. This indicates that while the company has some liquidity to meet short-term obligations, it may face challenges in maintaining a strong liquidity position consistently.

See also:

The Mosaic Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle is a measure of how efficiently a company manages its working capital to generate cash flows from its operations. A shorter cash conversion cycle indicates the company is able to convert its inventory and accounts receivable into cash more quickly.

Based on the data provided, Mosaic Company's cash conversion cycle has shown some fluctuations over the past eight quarters. In Q1 2022, the company had a relatively long cash conversion cycle of 105.55 days, indicating inefficiencies in managing its working capital. However, there was improvement in Q3 and Q4 2022, where the cash conversion cycle decreased to 100.39 days and 100.00 days, respectively.

Moving into 2023, there was further improvement in Q3 with a cash conversion cycle of 65.32 days, suggesting better management of working capital. However, in Q1 2023, the cash conversion cycle increased to 80.15 days, indicating a potential slowdown in converting inventory and accounts receivable into cash.

Overall, Mosaic Company has shown some variability in its cash conversion cycle over the past quarters, with periods of both improvements and setbacks. It would be important for the company to continue monitoring and optimizing its working capital management to ensure efficient cash flow generation in the future.