The Mosaic Company (MOS)
Quick ratio
| 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 | US$ in thousands | 348,800 | 591,000 | 626,100 | 464,800 | 735,400 | 702,800 | 839,100 | 881,900 | 769,500 | 842,800 | 1,417,600 | 692,000 | 574,000 | 923,000 | 1,073,300 | 1,069,200 | 519,100 | 641,100 | 401,900 | 384,600 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 671,000 | 668,000 | 673,000 | 673,000 | 683,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,269,200 | 1,399,200 | 1,222,200 | 1,426,300 | 1,699,900 | 1,899,800 | 2,251,900 | 1,530,100 | 1,531,900 | 1,081,500 | 930,500 | 851,600 | 881,100 | 794,600 | 689,600 | 723,000 | 803,900 | 801,400 | 711,700 | 792,000 |
| Total current liabilities | US$ in thousands | 3,873,700 | 4,696,300 | 4,839,400 | 5,167,600 | 5,533,800 | 5,130,300 | 5,632,000 | 5,051,700 | 4,787,400 | 3,494,500 | 4,137,900 | 3,355,000 | 3,146,500 | 2,865,700 | 3,112,900 | 3,269,000 | 2,591,700 | 2,724,500 | 2,526,900 | 2,397,200 |
| 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 |
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 fluctuated over the past eight quarters, ranging from a low of 0.49 in Q1 2023 to a high of 0.65 in Q2 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The quick ratio has generally been below the ideal ratio of 1, indicating that Mosaic Company may have difficulty meeting its short-term liabilities with its quick assets alone. A quick ratio below 1 suggests a potential liquidity risk, as the company may struggle to cover its immediate financial obligations without relying on inventory.
The downward trend in the quick ratio from Q2 2022 to Q1 2023 is concerning, as it indicates a decreasing ability to cover short-term liabilities with quick assets. However, the slight increase in Q2 and Q3 2023 could signal some improvement in liquidity.
Overall, Mosaic Company should continue to monitor its quick ratio and take steps to improve liquidity if necessary to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023