The Mosaic Company (MOS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.27 | 0.28 | 0.38 | 0.48 | 0.50 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,361,700K ÷ $12,290,200K
= 0.27
The debt-to-equity ratio of Mosaic Company has been decreasing over the past five years, indicating a positive trend in the company's financial structure. The ratio decreased from 0.50 in 2019 to 0.31 in 2023, suggesting that the company has been relying less on debt and more on equity to finance its operations.
A lower debt-to-equity ratio generally indicates lower financial risk and greater financial stability, as it shows that the company has more equity relative to its debt. Mosaic's decreasing trend in the debt-to-equity ratio signals that the company has been managing its debt levels effectively while also increasing its equity base.
Overall, the improving debt-to-equity ratio of Mosaic Company demonstrates a positive financial position and a prudent approach to capital structure management. It suggests that the company may be in a stronger position to weather economic downturns and pursue growth opportunities in the future.
Peer comparison
Dec 31, 2023