The Mosaic Company (MOS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.59% | 16.14% | 30.10% | 25.90% | 12.27% |
| Operating profit margin | 5.59% | 9.77% | 25.02% | 19.98% | 4.76% |
| Pretax margin | 3.25% | 9.80% | 25.13% | 18.03% | 1.01% |
| Net profit margin | 1.57% | 8.51% | 18.73% | 13.20% | 7.67% |
The analysis of The Mosaic Company's profitability ratios reveals a fluctuating trend over the years. The gross profit margin has shown significant improvement from 12.27% in December 2020 to 30.10% in December 2022, indicating better control over the cost of goods sold. However, there was a decline to 13.59% by December 2024.
Similarly, the operating profit margin improved from 4.76% in December 2020 to a peak of 25.02% in December 2022 before dropping to 5.59% in December 2024. This suggests that the company was able to efficiently manage its operating expenses during the period.
The pretax margin also exhibited growth from 1.01% in December 2020 to 25.13% in December 2022, but declined to 3.25% by December 2024, reflecting fluctuations in pre-tax profitability.
The net profit margin followed a similar pattern, increasing from 7.67% in December 2020 to 18.73% in December 2022, but decreased to 1.57% by December 2024. This indicates that the company's ability to convert revenue into net income fluctuated over the years.
Overall, while The Mosaic Company demonstrated improved profitability margins in certain years, the fluctuating trend suggests the need for continued monitoring and strategic management to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.71% | 5.81% | 20.46% | 11.20% | 2.09% |
| Return on assets (ROA) | 0.76% | 5.06% | 15.32% | 7.40% | 3.37% |
| Return on total capital | 3.98% | 9.78% | 32.20% | 16.61% | 2.13% |
| Return on equity (ROE) | 1.52% | 9.48% | 29.72% | 15.38% | 6.95% |
The profitability ratios of The Mosaic Company show fluctuating performance over the years analyzed. The Operating Return on Assets (Operating ROA) improved significantly from 2019 to 2022, reaching a peak of 20.46% in December 31, 2022, indicating the company's ability to generate operating income from its assets. However, there was a decline in 2023 and 2024, dropping to 5.81% and 2.71%, respectively.
Return on Assets (ROA) also varied, with the highest value of 15.32% in December 31, 2022, and the lowest value of 0.76% in December 31, 2024. ROA measures the company's overall profitability in relation to its total assets, reflecting how efficiently management is using its assets to generate earnings.
Return on Total Capital saw a significant increase from 2019 to 2022, peaking at 32.20% in December 31, 2022, but then experienced a decline in subsequent years, dropping to 3.98% by December 31, 2024. This ratio indicates the overall profitability of the company in relation to its total capital employed, including both debt and equity.
Return on Equity (ROE) varied similarly to the other profitability ratios, reaching a high of 29.72% in December 31, 2022, and a low of 1.52% in December 31, 2024. ROE evaluates the profitability of the company in relation to shareholders' equity, showcasing how effectively the company is utilizing equity investments to generate profits.
In summary, the profitability ratios of The Mosaic Company reflect a mixed performance with fluctuations over the years, indicating changes in efficiency in generating profits from assets, total capital, and equity. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's financial health and performance.