The Mosaic Company (MOS)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 189,000 | 168,800 | 194,300 | 214,100 | 216,000 |
| Interest coverage | 8.10 | 29.48 | 12.47 | 1.41 | -4.98 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,530,900K ÷ $189,000K
= 8.10
The interest coverage ratio for Mosaic Company has shown variability over the past five years. In 2023, the interest coverage ratio was 10.81, indicating that the company's operating income was sufficient to cover its interest expenses approximately 10 times over. This represents a decrease from the previous year when the ratio was 36.15, signaling a decrease in the company's ability to cover its interest payments.
Comparing the current ratio with earlier years, we see a significant improvement from 2020 and 2019 when the ratios were 1.77 and 1.68, respectively. This suggests that Mosaic Company has made progress in managing its interest expenses and strengthening its financial position over the past few years.
However, it is important to note that while the current interest coverage ratio is relatively healthy, the significant fluctuations in the ratio over the years may indicate potential volatility in the company's ability to cover its interest payments in the future. Further analysis of the company's financial health and overall performance would be necessary to assess the sustainability of its interest coverage ratio.
Peer comparison
Dec 31, 2023