The Mosaic Company (MOS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.08 | 1.19 | 1.16 | 1.16 | 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 |
| Quick ratio | 0.33 | 0.32 | 0.39 | 0.39 | 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 |
| Cash ratio | 0.07 | 0.07 | 0.08 | 0.08 | 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 |
The current ratio of The Mosaic Company has shown fluctuations over the past few years but has generally stayed above 1, indicating that the company has had sufficient current assets to cover its current liabilities. The ratio improved from 2020 to 2022, peaked at 1.34 in September 2022, and then decreased to 1.08 by the end of 2024. This suggests that the company's liquidity position weakened towards the end of the period.
On the other hand, the quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. The quick ratio also fluctuated but generally remained below 1, indicating that the company may have had difficulty covering its short-term obligations with its most liquid assets. The ratio improved slightly in 2022, before decreasing to 0.33 by the end of 2024.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, also shows a declining trend over the years. This indicates that the company's ability to pay off its current liabilities solely with cash and equivalents has weakened over time.
Overall, The Mosaic Company's liquidity ratios suggest a mixed performance in terms of its ability to meet short-term obligations. While the current ratio generally remained above 1, the quick and cash ratios indicate potential liquidity challenges, especially towards the end of the period under review. Investors and stakeholders may need to closely monitor the company's liquidity position and its ability to manage short-term obligations.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of The Mosaic Company has shown a decreasing trend from 415.98 days on March 31, 2020, to 86.23 days on December 31, 2024. This indicates an improvement in the efficiency of the company's cash management and working capital utilization over the years.
A lower cash conversion cycle means that the company is able to convert its investments in inventory back to cash more quickly, which is a positive sign for liquidity and operational efficiency. The company has been able to manage its inventory, accounts receivable, and accounts payable effectively to shorten the time it takes to generate cash from its operations.
However, it is important to continue monitoring the cash conversion cycle to ensure that the trend continues in a positive direction. Efficient management of the cash conversion cycle can lead to better cash flow management and overall financial health for the company.