The Mosaic Company (MOS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 348,800 | 735,400 | 769,500 | 574,000 | 519,100 |
| Short-term investments | US$ in thousands | — | — | — | 673,000 | — |
| Receivables | US$ in thousands | 1,269,200 | 1,699,900 | 1,531,900 | 881,100 | 803,900 |
| Total current liabilities | US$ in thousands | 3,873,700 | 5,533,800 | 4,787,400 | 3,146,500 | 2,591,700 |
| Quick ratio | 0.42 | 0.44 | 0.48 | 0.68 | 0.51 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($348,800K
+ $—K
+ $1,269,200K)
÷ $3,873,700K
= 0.42
The quick ratio of Mosaic Company has shown a declining trend over the past five years, decreasing from 0.63 in 2019 to 0.57 in 2020, and further dropping to 0.54 in both 2021 and 2022. Although there was a slight increase to 0.57 in 2023, the quick ratio still remains below 1.
A quick ratio below 1 indicates that Mosaic Company may have difficulty meeting its short-term obligations with its most liquid assets. This suggests a potential liquidity risk, as the company may struggle to cover its current liabilities without relying on selling inventory or other current assets.
It is important for Mosaic Company to closely monitor and improve its quick ratio in order to enhance its short-term liquidity position and ensure it can meet its financial obligations effectively. Further analysis of the company's current assets and liabilities structure may provide insights into specific areas for improvement.
Peer comparison
Dec 31, 2023