The Mosaic Company (MOS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.18 | 0.23 | 0.24 |
| Debt-to-capital ratio | 0.21 | 0.22 | 0.27 | 0.32 | 0.33 |
| Debt-to-equity ratio | 0.27 | 0.28 | 0.38 | 0.48 | 0.50 |
| Financial leverage ratio | 1.87 | 1.94 | 2.08 | 2.07 | 2.10 |
The solvency ratios of Mosaic Company over the past five years indicate a consistent improvement in the company's ability to meet its obligations. The debt-to-assets ratio has shown a declining trend, decreasing from 0.24 in 2019 to 0.16 in 2023, reflecting a reduction in debt relative to total assets.
Similarly, the debt-to-capital ratio has also exhibited a downward trajectory, dropping from 0.33 in 2019 to 0.23 in 2023. This indicates that Mosaic Company has been relying less on debt financing in relation to its total capital structure over the years.
The debt-to-equity ratio, which measures the proportion of debt to equity, has decreased from 0.50 in 2019 to 0.31 in 2023, signaling a decline in the company's dependency on debt funding compared to equity.
The financial leverage ratio, which assesses the extent of a company's financial leverage, has decreased from 2.10 in 2019 to 1.87 in 2023. This implies that Mosaic Company's reliance on debt to finance its operations has decreased, indicating a healthier financial position.
Overall, the trend in these solvency ratios suggests that Mosaic Company has made significant strides in improving its financial stability and reducing its reliance on debt, which bodes well for its long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.10 | 29.48 | 12.47 | 1.41 | -4.98 |
Mosaic Company's interest coverage ratio has exhibited fluctuations over the past five years. The interest coverage ratio, which represents the company's ability to meet its interest obligations on outstanding debt, was highest in Dec 2022 at 36.15, indicating the company's strong ability to cover its interest expenses with operating income. The significant decrease in the interest coverage ratio in Dec 2023 to 10.81 is worth noting, as it could suggest a reduced capacity to service debts with current earnings. Despite the fluctuation in recent years, Mosaic Company has generally maintained an interest coverage ratio above 1, indicating that it has generated sufficient income to cover its interest expenses. Monitoring this ratio going forward will be crucial to assess the company's financial health and ability to meet its debt obligations.