The Mosaic Company (MOS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 591,600 | 1,530,900 | 4,975,900 | 2,422,600 | 301,700 |
| Long-term debt | US$ in thousands | 3,377,600 | 3,361,700 | 3,397,200 | 3,978,800 | 4,578,000 |
| Total stockholders’ equity | US$ in thousands | 11,482,400 | 12,290,200 | 12,054,600 | 10,604,100 | 9,581,400 |
| Return on total capital | 3.98% | 9.78% | 32.20% | 16.61% | 2.13% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $591,600K ÷ ($3,377,600K + $11,482,400K)
= 3.98%
The Return on Total Capital ratio for The Mosaic Company has shown significant fluctuations over the past five years. As of December 31, 2020, the company's return on total capital stood at 2.13%, indicating a relatively low efficiency in generating profits from the total capital employed.
However, by December 31, 2022, the return on total capital surged to 32.20%, reflecting a substantial improvement in the company's ability to generate returns from its total capital. This sharp increase suggests a more effective utilization of resources and an enhanced profitability level.
The ratio then experienced a decline to 9.78% by December 31, 2023, indicating a slight drop in the company's efficiency in generating returns from its total capital compared to the previous year.
Finally, as of December 31, 2024, The Mosaic Company's return on total capital decreased further to 3.98%, signifying a decrease in the company's ability to generate profits from its total capital compared to the previous year.
Overall, the Return on Total Capital ratio for The Mosaic Company has displayed variability over the years, with a notable peak in 2022 and subsequent declines in the following years. This analysis highlights the importance of effectively managing and optimizing the company's capital structure to sustain and enhance profitability levels.
Peer comparison
Dec 31, 2024