The Mosaic Company (MOS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,530,900 | 4,975,900 | 2,422,600 | 301,700 | -1,076,100 |
| Long-term debt | US$ in thousands | 3,361,700 | 3,397,200 | 3,978,800 | 4,578,000 | 4,572,700 |
| Total stockholders’ equity | US$ in thousands | 12,290,200 | 12,054,600 | 10,604,100 | 9,581,400 | 9,185,500 |
| Return on total capital | 9.78% | 32.20% | 16.61% | 2.13% | -7.82% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,530,900K ÷ ($3,361,700K + $12,290,200K)
= 9.78%
Mosaic Company's return on total capital has shown significant fluctuations over the past five years. In 2023, the return on total capital was 8.71%, a considerable decline from the previous year's figure of 31.78%. This decrease indicates that the company's ability to generate profits from its total capital has weakened.
The highest return on total capital was recorded in 2022, at 31.78%, showcasing a strong performance that year. However, this figure was a substantial improvement compared to the returns in 2020 and 2019, which were relatively low at 2.25% and 2.23%, respectively.
Although there was a significant decrease in the return on total capital in 2023 compared to the peak in 2022, the company's current performance is still better than the levels seen in 2020 and 2019. It is essential for investors and stakeholders to monitor these fluctuations to assess the company's efficiency in generating returns relative to its total capital.
Peer comparison
Dec 31, 2023