The Mosaic Company (MOS)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 621,500 | 800,100 | 830,500 | 966,400 | 1,338,100 | 1,760,200 | 2,769,100 | 4,074,100 | 4,785,300 | 5,054,400 | 4,601,300 | 3,411,100 | 2,468,500 | 1,793,600 | 1,190,500 | 792,300 | 412,900 | -1,076,500 | -1,035,500 | -1,363,200 |
| Long-term debt | US$ in thousands | 3,377,600 | 3,312,700 | 3,319,000 | 3,350,400 | 3,361,700 | 3,356,800 | 3,392,900 | 3,389,300 | 3,397,200 | 3,959,400 | 3,959,600 | 3,977,300 | 3,978,800 | 3,994,700 | 4,462,800 | 4,469,500 | 4,578,000 | 4,577,800 | 4,587,100 | 4,571,900 |
| Total stockholders’ equity | US$ in thousands | 11,482,400 | 11,808,600 | 11,680,600 | 12,018,900 | 12,290,200 | 12,050,300 | 12,405,000 | 11,893,800 | 12,054,600 | 11,580,600 | 11,751,300 | 11,638,400 | 10,604,100 | 10,420,400 | 10,338,000 | 9,624,200 | 9,581,400 | 8,532,800 | 8,493,000 | 8,386,200 |
| Return on total capital | 4.18% | 5.29% | 5.54% | 6.29% | 8.55% | 11.42% | 17.53% | 26.66% | 30.97% | 32.53% | 29.29% | 21.84% | 16.93% | 12.44% | 8.04% | 5.62% | 2.92% | -8.21% | -7.92% | -10.52% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $621,500K ÷ ($3,377,600K + $11,482,400K)
= 4.18%
The Return on Total Capital of The Mosaic Company has shown significant fluctuations over the analyzed period. The ratio started at a negative percentage in March 2020, indicating that the company was not generating sufficient returns relative to its total capital employed.
However, there was a gradual improvement in the metric from the negative range to positive territory by December 2020, reflecting better capital utilization efficiency. From there, the return on total capital continued to increase steadily, reaching a peak of 32.53% in September 2022. This could indicate improved profitability and effective use of resources.
Subsequently, there was a slight decline in the ratio, but it remained relatively strong, staying above 10% until September 2023. From that point onwards, there was a more noticeable decrease, suggesting potential challenges in maintaining high returns on the total capital.
Overall, the company exhibited improved performance in generating returns relative to the total capital employed up to September 2022, but experienced some moderation and a declining trend afterward, indicating the need for continued monitoring and strategic management of capital resources.
Peer comparison
Dec 31, 2024