The Mosaic Company (MOS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.14% | 30.10% | 25.90% | 12.27% | 10.07% |
| Operating profit margin | 9.77% | 25.02% | 19.98% | 4.76% | -12.29% |
| Pretax margin | 9.80% | 25.13% | 18.03% | 1.01% | -14.51% |
| Net profit margin | 8.51% | 18.73% | 13.20% | 7.67% | -11.98% |
The profitability ratios of Mosaic Company have exhibited significant fluctuations over the past five years. The gross profit margin, which indicates the efficiency of the company in generating revenue after deducting the cost of goods sold, was relatively stable in the range of 10% to 30%. However, there was a notable decline in 2020, followed by a recovery in the subsequent years, with the margin reaching 16.14% in 2023.
The operating profit margin, reflecting the efficiency of the company in managing its operating expenses, showed a similar trend of variability. It ranged from 4.12% in 2019 to a high of 25.02% in 2022 before settling at 9.77% in 2023.
The pretax margin, which indicates the company's profitability before accounting for taxes, experienced significant fluctuations over the period. It was negative in 2019, improving to 25.30% in 2022, but declining to 10.12% in 2023.
The net profit margin, representing the bottom line profitability after all expenses, showed a similar pattern of variability. It ranged from a low of -11.98% in 2019 to a high of 18.73% in 2022, settling at 8.51% in 2023.
Overall, Mosaic Company's profitability ratios have shown inconsistencies in performance, with fluctuations in gross, operating, pretax, and net profit margins over the past five years, indicating potential challenges in managing costs and maximizing profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.81% | 20.46% | 11.20% | 2.09% | -5.67% |
| Return on assets (ROA) | 5.06% | 15.32% | 7.40% | 3.37% | -5.53% |
| Return on total capital | 9.78% | 32.20% | 16.61% | 2.13% | -7.82% |
| Return on equity (ROE) | 9.48% | 29.72% | 15.38% | 6.95% | -11.62% |
The profitability ratios of Mosaic Company have shown fluctuating trends over the past five years.
Operating return on assets (Operating ROA) has varied from a low of 1.90% in 2019 to a high of 20.46% in 2022, with a significant decrease in 2023 to 5.81%. This ratio indicates the company's ability to generate profits from its assets before considering interest and taxes.
Return on assets (ROA) has also displayed variability, ranging from a negative value of -5.53% in 2019 to a peak of 15.32% in 2022. The ratio improved in 2023 to 5.06%, demonstrating the company's efficiency in generating profits relative to its total assets.
Return on total capital reflects Mosaic Company's profitability concerning the total capital employed, showing fluctuations over the years. The lowest value was 2.23% in 2019, increasing to 31.78% in 2022 and then decreasing to 8.71% in 2023.
Return on equity (ROE) has followed a similar pattern, with negative performance in 2019 (-11.62%) and positive growth in subsequent years, reaching a peak of 29.72% in 2021 before declining to 9.48% in 2023. ROE measures the return on shareholder equity, indicating how efficiently the company is utilizing shareholders' investments to generate profits.
Overall, while there have been fluctuations in profitability ratios, Mosaic Company has demonstrated the ability to generate returns for its assets, total capital, and equity over the analyzed period. The company's performance in 2023 showed a decrease in profitability compared to previous years, suggesting a potential area for further examination and improvement.